Markets Wired

As Prepared for Delivery

Good morning and thank you to the American Chamber of Commerce for hosting me here today. I’m delighted to be in Santiago.

Chile is a key ally and partner in the Western Hemisphere, and our economies have long been deeply intertwined.

Goods and services trade between the U.S. and Chile has quintupled since the implementation of our bilateral Free Trade Agreement 20 years ago, reaching almost $50 billion in 2022.

Last December, a comprehensive bilateral tax treaty entered into force. I know that some of you here played an important role in advocating for its passage.

Since the start of the Biden Administration, we’ve worked to further strengthen ties, to support American workers and firms, and to create opportunities for Chile.

Our efforts have focused on building green and resilient supply chains and advancing our climate agendas.

But realizing the opportunities available to us is by no means a given. The private sector needs a strong investment and operating environment to function—from adequate infrastructure to a trained workforce to regulatory stability.

The Biden Administration is pursuing wide-ranging efforts to support creating the right enabling environments for private sector investment, in partnership with Chile.

Last November, President Boric and I participated in the Leaders’ Summit of the Americas Partnership for Economic Prosperity, or APEP.

At APEP, President Biden announced new initiatives that we are now implementing to advance innovative nature-based solutions, and promote efforts to strengthen the region’s supply chain integration in key sectors.

The Treasury Department is also working with our counterparts at the finance ministry and with others across the Chilean government.

We are also pleased that the Inter-American Development Bank Board of Governors is poised to approve a capital increase for IDB’s private sector arm, IDB Invest, during the IDB Annual Meetings in March.

This capital increase will provide IDB Invest with the capital it needs to deploy its innovative new business model and support private sector development in Chile.

President Biden championed this capital increase during the Summit of the Americas, and we are proud that it will soon become reality.

Today, I am pleased to be talking with private sector representatives from a range of sectors of the Chilean economy, many of whom represent businesses with cross-border ties that have directly experienced the significant advantages of free trade and integration.

Frequent and direct dialogues with the private sector are vital to understanding your needs, and I’m looking forward to the discussion.

I’ll stop here and open the floor for your comments. Thank you
 

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State Small Business Credit Initiative funding represents the most widespread federal investment in small business through equity capital ever and the largest direct infusion of federal funds for equity participation in early-stage small businesses in history

DURHAM, NC – Today, Vice President Kamala Harris, Deputy Secretary of the Treasury Wally Adeyemo, and North Carolina Governor Roy Cooper are announcing North Carolina’s award of $32 million in federal funds from the American Rescue Plan (ARP) to 10 venture capital firms under the Treasury Department’s State Small Business Credit Initiative (SSBCI). SSBCI is the most widespread federal investment in small businesses through equity capital ever and the largest direct infusion of federal funds for equity participation in early-stage small businesses in history. North Carolina is awarding these funds to 10 women- and minority-led venture capital firms with proven track records of support for small businesses and entrepreneurs. This investment will catalyze an additional $60 million in private investment in North Carolina, totaling more than $90 million to primarily support and grow small underserved businesses in the state.

“The President and I are expanding access to opportunity by investing in the backbone of our economy: American small businesses,” said Vice President Kamala Harris. “Our historic investments in infrastructure, clean energy, and manufacturing, and our actions to increase access to capital have spurred historic small business growth for the last three years. Today’s announcement will build on that momentum and, as part of our broader efforts to Invest in America, will allow thousands of entrepreneurs from historically underserved communities the ability to hire more employees, grow their businesses, and advance innovation.”

“The investments through the State Small Business Credit Initiative are a key part of the Biden-Harris Administration’s efforts to provide small businesses and entrepreneurs the resources they need to succeed,” said Deputy Secretary Wally Adeyemo. “Today’s announcement will help unlock the potential of entrepreneurs in underserved communities across North Carolina who have not had the support to pursue their ambitions and launch a new business.” 

“This effort by the Biden-Harris administration’s American Rescue Plan will strengthen small businesses throughout out state,” said Governor Roy Cooper. “Investments in historically underutilized businesses will help transform our communities and provide equal opportunities for everyone to succeed.”

President Biden’s American Rescue Plan reauthorized and expanded SSBCI, which was established in 2010 and was highly successful in increasing access to capital for small businesses and entrepreneurs. The new SSBCI builds on this successful model by providing nearly $10 billion to states, the District of Columbia, territories, and Tribal governments to increase access to capital and promote entrepreneurship, especially in traditionally underserved communities. SSBCI funding at large is expected to catalyze up to $10 of private investment for every $1 of SSBCI capital funding, amplifying the effects of this funding and providing small business owners with the resources they need to sustainably grow and thrive. The SSBCI program includes funding and incentives for jurisdictions to reach underserved businesses, including those owned by people of color, women, veterans, people with disabilities, and individuals in rural areas. 

North Carolina is just one of forty-six states and territories that are committing nearly $3 billion from the Treasury Department’s SSBCI to equity-based financing programs, including over $1.4 billion through partnerships with private venture capital funds. These investments are expected to catalyze over $30 billion in additional private investment and follow-on funding over the decade that will help underserved entrepreneurs tap into a critical source of capital for business development and wealth creation that has traditionally suffered from some of the most restrictive barriers to access.

A total of 10 venture capital firms received these investments, including: 

• Nex Cubed, which has a Historically Black Colleges and Universities (HBCU) Founders Fund that helps to launch and scale entrepreneurial endeavors led by alumni, students, and faculty from HBCUs. Nex Cubed makes an initial investment of $120,000 in each selected start-up and provides dedicated executive-level support from a paid advisor.
• RevTech Labs, a majority female and Latina-owned entrepreneurship center, accelerator, and venture fund that prioritizes supporting and elevating traditionally underrepresented founders in financial, health, and insurance technologies. RevTech will invest in over 200 early-stage companies and provides support as an accelerator, with 350 mentors and subject matter experts available to support success.
• LaVert Ventures, a woman-owned AgTech fund that focuses on investing in precision agriculture, crop protection, and indoor agriculture, ensuring that venture capital supports strong and equitable growth in rural America. These technologies will help to address the food production demands and environmental pressures that are set to increase in the coming decades. 
• Latimer Ventures, an early-stage venture capital fund that seeks to help enterprise founders build great companies and Fortune 1000 Companies make diverse acquisitions. Latimer is focused on deploying its investment model to build the next generation of Black and Hispanic enterprise software companies. 

To date, the Treasury Department has announced the approval of state, territory, and Tribal government plans corresponding to more than $8.4 billion in funding under the SSBCI Capital Program to support small business and entrepreneurship and expand access to capital. In addition to the SSBCI Capital Program, the Department has announced more than $108 million of awards through the SSBCI Technical Assistance Program, which will provide vital aid to help small businesses become “capital ready” by preparing them to take on loans or investment and steward capital for small business success. 

SSBCI is one example of how the Treasury Department has taken the lead role in implementing programs and initiatives to support small businesses across all communities. The Department’s work has also helped these funds reach traditionally underserved entrepreneurs and small businesses that will ensure the small business boom grows the economy in communities that were disproportionately harmed by the pandemic. These programs are key to the Biden-Harris Administration’s strategy to strengthen the small business creation seen since the start of this Administration by expanding access to capital and customers, and by providing entrepreneurs the resources they need to succeed. Alongside other programs and initiatives under President Biden and Vice President Harris’ leadership, the United States is on track to have the three strongest years in history for new small business applications, and Black business ownership has grown at the fastest pace in 30 years.

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As Prepared for Delivery

Good morning. Thank you to Finance Minister Marcel for co-hosting this roundtable on the financing of the green energy transition with me today and to all the companies attending.

The U.S. and Chile have a longstanding bilateral economic relationship characterized by close cooperation and strong commitment to shared goals, including addressing climate change by driving forward the energy transition.

Both our nations have made great strides in fueling the investment necessary to curb emissions and deploy clean renewable energy.

Critical minerals are a key part of this green transition.

The United States is focused on deepening ties with trusted partners like Chile and building resilient and reliable clean energy supply chains through investments at home in the U.S. and abroad.

Our efforts include the Inflation Reduction Act, which puts the United States on track to reduce its greenhouse gas emissions by at least 40 percent by the end of the decade.

The Inflation Reduction Act includes tax credits to increase the production of clean energy and clean energy products, providing the long-term clarity and certainty that businesses and investors have sought for years and giving them the confidence needed to make the large-scale investments that will drive the transition to a clean energy economy.

There’s a lot of work ongoing in Chile as well.

I congratulate Minister Marcel on his leadership and the Boric administration for being strong stewards of the green transition, including through rapid work to decarbonize the electricity sector, leading green bond issuance, and supporting progress in the domestic lithium industry.

We look forward to further collaboration between our ministries and our countries more broadly, including our private sectors, to continue promoting investments that drive the energy transition forward.

Today, I am pleased to be talking with private sector representatives from a range of groups driving Chile’s energy transition.

Many of you are recognized for your innovation and great achievements, such as in developing green financing products and technologies to drive the transition, and I look forward to hearing your thoughts today.

I’ll stop here and open the floor for our discussion. Thank you.

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American Rescue Plan funding, administered by the Treasury Department, builds off of previous announcement of nearly $245 million for broadband infrastructure projects and multi-purpose community facilities in Pennsylvania

PHILADELPHIA, PA – Today, the Biden-Harris Administration announced the approval of $20 million for digital connectivity projects in Pennsylvania under the U.S. Department of the Treasury’s Capital Projects Fund (CPF), part of President Biden’s Investing in America agenda. Today’s award will fund Pennsylvania’s Digital Access Opportunity Grant program, through which the commonwealth will partner with community anchor institutions (CAIs) to increase access to laptops, tablets, desktop computers, and Wi-Fi devices to individuals in Pennsylvania. Devices will be available for use in home or public spaces, such as schools and libraries, through loan programs from CAIs. CAIs will also offer digital literacy training. Pennsylvania estimates this program will benefit approximately 12,000 individuals annually. 

“Projects that address gaps in internet access and affordability are critical to meeting the Biden-Harris Administration’s goal of expanding economic opportunity in communities across the country,” said Deputy Secretary of the Treasury Wally Adeyemo. “By funding the Digital Access Opportunity Grant program, these American Rescue Plan resources will help close the digital divide in the commonwealth and connect thousands of Pennsylvanians to workforce, education, and health care services they need to live prosperous and healthy lives.”

“As our world becomes more digital, closing the digital divide in our communities is more important than ever. Pennsylvania’s economic future depends on reliable high-speed internet access for every community—rural, urban, and everything in between,” said Senator Bob Casey (D-PA). “This funding won’t just provide more laptops and wi-fi devices to people who need them, it will help break down the barrier that’s keeping a young mother from a higher education, a small business from reaching a new market, and a grandparent from staying in touch with their grandkids.”  

“High-speed internet access is no longer a luxury – it’s a necessity,” said Senator John Fetterman (D-PA). “This $20 million for Digital Connectivity Technology projects will bring Pennsylvanians access to critical devices that help them run a business, get an education, visit the doctor, and so much more.”

“This funding will help level the digital playing field for more than 12,000 Pennsylvania residents—many of whom reside in my district,” said Congressman Brendan F. Boyle (PA-02). “The American Rescue Plan– that I voted for—is the catalyst propelling this major stride toward bridging the digital divide for Pennsylvanians needing to access essential technology who would otherwise be left behind. Each dollar invested here will serve to empower those individuals with the tools they need to thrive in our increasingly interconnected world.”

“I was proud to vote for President Biden’s American Rescue Plan and am pleased to see it delivering again for Pennsylvania,” said Representative Dwight Evans (PA-03).

“In this digital age, Pennsylvanians need to be connected to find job opportunities, access telehealth services, do their homework, and save time and transportation costs.” said Representative Scanlon (PA-05). “I’m pleased to see the Biden Administration’s Investing in America Agenda continue to help close the digital divide so that all our families have access to the critical services they need to thrive.”

“In today’s digital economy, reliable broadband is not a luxury. It is a necessity,” said Representative Chrissy Houlahan (PA-06). “I am grateful for the Biden Administration’s recognition of the need we have in our Commonwealth for greater internet access and proud that the American Rescue Plan funding I voted for continues to benefit thousands of Pennsylvanian families and businesses.”

“I am thrilled that this grant will provide Pennsylvanians with the opportunity to access affordable, reliable internet and devices like laptops and tablets,” said Representative Susan Wild (PA-07). “Tens of thousands of Pennsylvanians – including many in my own district – rely on internet connectivity and computers in their everyday lives, and I will always advocate for closing the gap in technology affordability to make sure everyone in our community has the tools they need to succeed.”

“I am proud to announce Pennsylvania is getting even more federal investments to help connect thousands of residents to the internet,” said Representative Chris Deluzio (PA-17). “High-speed internet service should not be a luxury—it’s a necessity. With better and cheaper broadband in in our region thanks to funding like this, we can get folks connected, attract new industries, support our students, and help small businesses grow and thrive.”

The American Rescue Plan’s Capital Projects Fund provides a total of $10 billion to states, territories, freely associated states, and Tribal governments to fund critical capital projects that expand economic opportunities and provide internet connectivity in communities with unmet needs. Through high-speed internet, multi-purpose community facilities, and digital technology investments such as the one being announced today, CPF funding is both closing the digital divide and bringing workforce, education, and health care services to communities in need.

Today’s announcement is in addition to last year’s award of $200 million in CPF funding for high-speed internet projects in Pennsylvania, which the commonwealth estimates will connect approximately 44,000 homes and businesses to affordable, high-speed internet, and $45 million for multi-purpose community facilities. To date nationwide, CPF has awarded more than $9.2 billion for broadband, digital technology, and multi-purpose community center projects in all states and the District of Columbia, which these states estimate will reach over two million locations with expanded internet access, in addition to the hundreds of thousands of individuals who will be served annually by multi-purpose community facilities.

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As Prepared for Delivery

Good afternoon. I’m very glad to have had the opportunity to meet with Minister Marcel today.

Our meeting today—and my trip to Chile—come in the context of an already strong bilateral economic relationship.

The U.S. and Chile have had a Free Trade Agreement in place for 20 years, enabling substantial trade and investment between our two countries. And just last year a Bilateral Tax Treaty entered into force.

This treaty is a recognition of the significant investments that Americans have in Chile and the welcome investments Chileans are making in the United States.

In fact, our tax treaty with Chile is the first such treaty the U.S. has entered into in a decade.

Now, we are building on this foundation and further deepening our economic ties and our collaboration across a wide range of areas.

In my meeting with Minister Marcel today, we discussed the priorities shared by the U.S. and Chile and the many additional opportunities for further collaboration between our countries.

This starts with each of our country’s ambitious climate goals and the tremendous joint opportunity to build resilient and green supply chains.

At home in the United States, President Biden’s Bipartisan Infrastructure Law, Inflation Reduction Act, and CHIPS and Science Act are fueling massive investments in infrastructure, clean energy, and manufacturing.

For example, tax credits through the Inflation Reduction Act make it cheaper to invest in energy-efficiency upgrades and buy electric vehicles.

Chile is pursuing its own impressive agenda, including leading the way as the first sovereign issuer of green bonds in the region. I know that Chile recently received an award from Latin Finance on its impressive program for sustainable bonds.

Chile’s leadership in this space was on display today in the fascinating discussion I had with Minister Marcel and several private sector firms that are helping to drive Chile’s green transition.

I commend the minister and his whole team for their strong efforts to keep Chile at the vanguard of this exciting space.

Furthering both our climate agendas—and our energy security—also depends on building green and resilient supply chains, involving both the U.S. and Chile.

As a leading producer of both copper and lithium, Chile has a critical role to play in the supply chains that will power our world’s transition to clean energy. American companies are investing. And we see opportunities to further integrate our supply chains with benefits for both our economies.

Our ongoing and potential collaboration also extends far beyond clean energy.

As one example, I affirm Treasury’s interest in supporting Chile’s commitment to increasing foreign direct investment and protecting its national security through continued collaboration on investment screening best practices.

And there is significant scope for Chile and the United States to work together in the context of multilateral forums such as the Inter-American Development Bank.

We are working together, for example, to approve a new ambitious Institutional Strategy for the Bank next month, as well as a historic capital increase that would double the size of its private sector arm, IDB Invest.

These efforts will provide crucial financing to the region, including to advance investments in clean energy.

There are of course many other areas of possible cooperation as well.

I again congratulate Minister Marcel on his leadership and look forward to further collaboration between the U.S. Treasury Department and Ministry of Finance as we continue to move forward on our many shared priorities.

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WASHINGTON – Preliminary data from the June 2023 benchmark survey of foreign portfolio holdings of U.S. securities were released today on the Treasury website here. Final survey results, which will include additional detail as well as possible revisions to the preliminary data, will be reported on April 30, 2024.  The survey was undertaken jointly by Treasury, the Federal Reserve Bank of New York, and the Board of Governors of the Federal Reserve System.  The next annual survey will cover holdings at the end of June 2024; preliminary data are expected to be released by February 28, 2025.

Complementary surveys measuring U.S. holdings of foreign securities are also carried out annually. Data from the most recent survey, reporting on securities held at year-end 2023, are currently being processed. Preliminary results are expected to be reported by August 30, 2024.

Overall Preliminary Results

The survey measured the value of foreign holdings of U.S. securities as of June 30, 2023, to be $26,863 billion, with $13,715 billion held in U.S. equities, $11,964 billion held in U.S. long-term debt securities ^[1] (of which $1,555 billion are holdings of asset-backed securities (ABS)^[2] and $10,409 billion are holdings of non-ABS securities), and $1,184 billion held in U.S. short-term debt securities.  The previous survey, conducted as of June 30, 2022, measured the value of total foreign holdings of U.S. securities at $24,893 billion, with holdings of $12,177 billion in U.S. equities, $11,591 billion in U.S. long-term debt securities, and $1,124 billion in U.S. short-term debt securities (see Table A). 

Table A.  Foreign holdings of U.S. securities, by type of security, as of recent survey dates

(Billions of dollars)

Type of security	June 30, 2022			June 30, 2023
Long-term securities	23,768			25,679
Equities		12,177			13,715
Long-term debt		11,591			11,964
Asset-backed		1,494			1,555
Other		10,097			10,409
Short-term debt securities	1,124			1,184
Total	24,893			26,863
Of which: Official	5,946			6,155

Table B.  Foreign holdings of U.S. securities, by country and type of security, for the major investing countries into the U.S., as of June 30, 2023

(Billions of dollars)

		Total	Equities	Long-term debt		Short
				ABS	Other	-term
1	United Kingdom	2,622	1,458	98	967	99
2	Japan	2,496	837	270	1,320	69
3	Cayman Islands	2,356	1,568	95	565	128
4	Luxembourg	2,099	1,087	57	826	128
5	Canada	2,055	1,459	138	428	30
6	Ireland	1,478	842	65	422	150
7	China, mainland	1,432	309	267	851	5
8	Switzerland	1,087	683	10	331	63
9	Belgium	984	86	20	805	72
10	Taiwan	717	112	211	388	6
11	Norway	694	511	*	181	1
12	France	677	363	36	257	22
13	Singapore	665	408	24	224	9
14	Germany	623	412	12	187	13
15	Korea, South	585	387	37	149	12
16	Australia	572	474	14	71	14
17	Netherlands	478	320	17	137	4
18	Hong Kong	435	168	10	228	30
19	Kuwait	372	279	6	62	26
20	Sweden	365	315	*	50	1
21	Bermuda	365	132	41	148	45
22	Saudi Arabia	305	184	4	107	11
23	India	248	12	*	233	2
24	Brazil	246	17	*	224	5
25	British Virgin Islands	220	135	3	59	23
	Rest of world	2,685	1,159	120	1,190	217
	Total	26,863	13,715	1,555	10,409	1,184
	of which: Foreign official	6,155	1,567	663	3,701	224

*  Less than $500 million but more than zero.

[i].  Excludes Hong Kong, Macau, and Taiwan, which are reported separately.

^{[1].  Long-term debt securities have an original term-to-maturity of over one year.}

^{[2].  Asset-backed securities are backed by pools of assets, such as pools of residential home mortgages or credit card receivables, which give the security owners claims against the cash flows generated by the underlying assets.  Unlike most other debt securities, these securities generally repay both principal and interest on a regular basis, reducing the principal outstanding with each payment cycle.} 

SÃO PAULO –Today, U.S. Secretary of the Treasury Janet L. Yellen met with Minister of Finance Mohammed Al-Jadaan of Saudi Arabia on the sidelines of the G20 Finance Ministers and Central Bank Governors meeting in São Paulo, Brazil. Secretary Yellen discussed with the Minister the outlook for Saudi Arabia’s economy, the progress of its reform program, and its regional and global engagements. They emphasized their shared interest in working together effectively in both bilateral and multilateral settings. They reaffirmed the importance of working together to strengthen countering the financing of terrorism.

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SÃO PAULO –  U.S. Secretary of the Treasury Janet Yellen met with Deputy Prime Minister and Minister of Economy and Finance of the Republic of Korea Choi Sangmok. Secretary Yellen congratulated him on his recent appointment as finance minister and welcomed the opportunity to continue to build strong ties between our two countries, including through a trilateral U.S., South Korea, Japan Finance Ministers meeting later this year.

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