The US has reached its debt limit of $31.4 trillion and there is no majority in the House of Representatives to raise the limit. Treasury Secretary Janet Yellen said her department had begun taking "extraordinary measures" to protect the US from insolvency.

WION Dispatch: US Treasury adopts emergency measures after government reaches the debt ceiling

As the United States and China grapple with a series of deferring but intertwined geopolitical challenges, a landmark meeting in Zurich in Switzerland US Treasury Janet Yellen met Chinese Vice Premier Liu He.

US-China meet at Zurich: US Treasury Janet Yellen meets Chinese Vice Premier Liu He | WION

The US Treasury Secretary Janet Yellen on Friday wrote a letter to House Speaker Kevin McCarthy, warning that the country was about to hit its debt ceiling limit and that extraordinary measures were needed to avoid defaulting.

The US Treasury Secretary Janet Yellen on Friday wrote a letter to House Speaker Kevin McCarthy, warning that the country was about to hit its debt ceiling limit and that extraordinary measures were needed to avoid defaulting. "I am writing to inform you that beginning on Thursday, January 19, 2023, the outstanding debt of the United States is projected to reach the statutory limit," wrote Yellen in the letter. "Once the limit is reached, Treasury will need to start taking certain extraordinary measures to prevent the United States from defaulting on its obligations." In layman's terms, a debt limit is the amount of money that the US government can borrow to meet its financial obligations such as social security, military salaries and medicare benefits payments. Congress last month extended the statutory debt limit to $31.4 trillion. However, the weak economic fundamentals and overflowing expenditures mean that the US will be breaching the limit. Consequently, Congress may have to engage in a tussle yet again to raise the limit. Read more: US debt reaches all-time high of $31 trillion, by 2029 interest payments may overtake defence expenditure With the Senate under the control of Democrats and the House in Republican hands, it is highly unlikely that a straightforward limit hike will be possible. If the congressional lawmakers cannot make a decision quickly, the world's largest economy could risk defaulting on its debt. According to Yellen, even the extraordinary measures, if implemented will only buy the government a limited amount of time. "It is therefore critical that Congress act in a timely manner to increase or suspend the debt limit. Failure to meet the government's obligations would cause irreparable harm to the US economy, the livelihoods of all Americans, and global financial stability," warned Yellen. WATCH | World Business Watch | US Treasury Secy Janet Yellen predicts fall in inflation by 2023 × The Treasury Department has given two options to reduce debt obligations. Firstly, it has advised the government to redeem existing and suspend new investments in the Civil Service Retirement and Disability Fund (CSRDF) and the Postal Service Retiree Health Benefits Fund (Postal Fund). Additionally, it has requested to suspend reinvestment of the Government Securities Investment Fund of the Federal Employees Retirement System Thrift Savings Plan. Breaching the debt threshold could spell doom for President Joe Biden who is attempting to run for the 2024 presidential election. (With inputs from agencies) WATCH WION LIVE HERE:

US perilously close to hitting debt limit and defaulting, warns treasury secretary Janet Yellen

US Treasury Secretary Janet Yellen became the latest Treasury secretary to sign US currency and the first woman Treasury secretary to have her signature on a US banknote. She was joined at the site by US Treasury Chief Lynn Malerba, the first Native American to serve in that role.

WION Fineprint: U.S. prints first banknotes with women's signatures

US Treasury Secretary Janet Yellen said on Thursday (December 8) that a recession in US was 'not inevitable', adding that the economy was on the right track in lowering inflation. Yellen spoke with reporters during her visit to the Bureau of Engraving and Printing's currency facility in Fort Worth, Texas.

On "whether or not we can avoid a recession, I believe the answer is yes," she told reporters.

Yellen's comments came on the heels of a forceful campaign by the US central bank to cool demand this year, walking a tightrope between lowering consumer costs while trying not to tip the economy into a downturn.

Meanwhile, a Reuters poll said that the US&nbsp;economy is heading into a short and shallow recession over the coming year. The&nbsp;economists polled by Reuters unanimously expected the US&nbsp;Federal Reserve to go for a smaller 50 basis point interest rate hike on December&nbsp;14.

After raising the federal funds rate 75 basis points at each of the previous four meetings, all 84 economists polled from December&nbsp;2-8 expected the central bank to go for a slightly softer half a percentage point to 4.25 per cent-4.50 per cent&nbsp;this time.

There is still a feeling among economists that the US may experience downturn next year.

Yellen however, said that supply chain bottlenecks had begun to ease and new apartment rents have "essentially peaked," with the labour market cooling slightly as well.

"Without seeing significant net nationwide layoffs, I believe we're on the right track in terms of lowering inflation and a recession's not inevitable," she added.

Also Read | <a href="https://www.wionews.com/world/us-landmark-bill-to-protect-same-sex-marriage-passed-by-congress-541396">US: Landmark bill to protect same-sex marriage passed by Congress</a>

As businesses tone down their growth expectations and hiring plans, the number of people leaving their jobs has also dipped a little, she said.

Last week, Federal Reserve Chair Jerome Powell added it remains "very plausible" for the US to reach a soft landing, referring to a scenario where unemployment rises but the economy avoids a severe recession.

(With inputs from agencies)

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US Treasury Secretary Janet Yellen said on Thursday (December 8) that a recession in US was 'not inevitable', adding that the economy was on the right track in lowering inflation.

US Treasury Secretary Janet Yellen said on Thursday (December 8) that a recession in US was 'not inevitable', adding that the economy was on the right track in lowering inflation. Yellen spoke with reporters during her visit to the Bureau of Engraving and Printing's currency facility in Fort Worth, Texas. On "whether or not we can avoid a recession, I believe the answer is yes," she told reporters. Yellen's comments came on the heels of a forceful campaign by the US central bank to cool demand this year, walking a tightrope between lowering consumer costs while trying not to tip the economy into a downturn. Meanwhile, a Reuters poll said that the US economy is heading into a short and shallow recession over the coming year. The economists polled by Reuters unanimously expected the US Federal Reserve to go for a smaller 50 basis point interest rate hike on December 14. After raising the federal funds rate 75 basis points at each of the previous four meetings, all 84 economists polled from December 2-8 expected the central bank to go for a slightly softer half a percentage point to 4.25 per cent-4.50 per cent this time. There is still a feeling among economists that the US may experience downturn next year. Yellen however, said that supply chain bottlenecks had begun to ease and new apartment rents have "essentially peaked," with the labour market cooling slightly as well. "Without seeing significant net nationwide layoffs, I believe we're on the right track in terms of lowering inflation and a recession's not inevitable," she added. Also Read | US: Landmark bill to protect same-sex marriage passed by Congress As businesses tone down their growth expectations and hiring plans, the number of people leaving their jobs has also dipped a little, she said. Last week, Federal Reserve Chair Jerome Powell added it remains "very plausible" for the US to reach a soft landing, referring to a scenario where unemployment rises but the economy avoids a severe recession. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

US economy is heading into a short and shallow recession, say economists in poll

The US Treasury Secretary Janet Yellen stated on Friday that India can continue to buy as much Russian oil as it wants, including at rates above the&nbsp;G7-imposed price cap as long as it avoids Western insurance, finance, and maritime services bound by the cap.&nbsp;

In an interview with Reuters on the sidelines of the US–India business and investment opportunities event in New Delhi, Yellen said despite India's oil purchases from Russia the G7 price cap, which is intended to cut Russia's revenue will&nbsp;still work and bring down global oil prices.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/our-purchases-for-the-month-would-be-less-than-what-europe-does-in-an-afternoon-jaishankar-on-russian-oil-470374">Our purchases for the month would be less than what Europe does in an afternoon: Jaishankar on Russian oil</a>

"Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil," Yellen told Reuters. "They're going to be heavily in search of buyers. And many buyers are reliant on Western services."

The Treasury Secretary also highlighted that Russian oil "is going to be selling at bargain prices and we're happy to have India get that bargain or Africa or China. It's fine."

Over purchase of Russian oil by India and private Indian oil companies, Yellen said they "can also purchase oil at any price they want as long as they don't use these Western services and they find other services."

ALSO READ |&nbsp;<a href="https://www.wionews.com/india/buying-russian-gas-is-not-funding-the-war-says-jaishankar-484836">Buying Russian gas is not funding the war, says Jaishankar</a>

During the event, she termed India as one of the trusted trading partners of US. "In a world where supply chain vulnerabilities can impose heavy costs, we believe it’s important to strengthen our trade ties with India and the large number of countries that share our approach to economic relations," she remarked&nbsp;at the event.&nbsp;

She said that the recent disruptions caused by the pandemic and Russia’s war on Ukraine are reasons to further deepen India-US economic ties.

WATCH |&nbsp;&nbsp;<a href="https://www.wionews.com/videos/us-treasury-secretary-janet-yellen-meets-indias-finance-minister-nirmala-sitharaman-533263">US' Treasury Secretary Janet Yellen meets India's Finance Minister Nirmala Sitharaman</a>

India's External Affairs Minister S Jaishankar, has on various national and international platforms earlier,&nbsp;explained India's oil purchases from Russia where he made clear that India will do what is the best for the nation.&nbsp;

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The US Treasury Secretary Janet Yellen stated on Friday that India can continue to buy as much Russian oil as it wants, including at rates above the G7-imposed price cap as long as it avoids Western insurance, finance, and maritime services bound by the cap.

The US Treasury Secretary Janet Yellen stated on Friday that India can continue to buy as much Russian oil as it wants, including at rates above the G7-imposed price cap as long as it avoids Western insurance, finance, and maritime services bound by the cap. In an interview with Reuters on the sidelines of the US–India business and investment opportunities event in New Delhi, Yellen said despite India's oil purchases from Russia the G7 price cap, which is intended to cut Russia's revenue will still work and bring down global oil prices. ALSO READ | Our purchases for the month would be less than what Europe does in an afternoon: Jaishankar on Russian oil "Russia is going to find it very difficult to continue shipping as much oil as they have done when the EU stops buying Russian oil," Yellen told Reuters. "They're going to be heavily in search of buyers. And many buyers are reliant on Western services." The Treasury Secretary also highlighted that Russian oil "is going to be selling at bargain prices and we're happy to have India get that bargain or Africa or China. It's fine." Over purchase of Russian oil by India and private Indian oil companies, Yellen said they "can also purchase oil at any price they want as long as they don't use these Western services and they find other services." ALSO READ | Buying Russian gas is not funding the war, says Jaishankar During the event, she termed India as one of the trusted trading partners of US. "In a world where supply chain vulnerabilities can impose heavy costs, we believe it’s important to strengthen our trade ties with India and the large number of countries that share our approach to economic relations," she remarked at the event. She said that the recent disruptions caused by the pandemic and Russia’s war on Ukraine are reasons to further deepen India-US economic ties. WATCH | US' Treasury Secretary Janet Yellen meets India's Finance Minister Nirmala Sitharaman India's External Affairs Minister S Jaishankar, has on various national and international platforms earlier, explained India's oil purchases from Russia where he made clear that India will do what is the best for the nation. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India can buy as much Russian oil as it wants, outside price cap, says US

Washington and New Delhi are working to strengthen their supply chains in order to reduce dependency on “risky countries”, US Treasury Secretary Janet Yellen said in a veiled reference to China and Russia.&nbsp;Yellen, who is on her maiden visit to India, made these remarks on Friday at an event at Microsoft Inc's facility just outside the national capital Delhi.&nbsp;

While introducing the concept of ‘friendshoring', she called on like-minded countries to deepen trade and investments within a group of countries with shared values.&nbsp;

Under this 'friendshoring' approach, the US is diversifying away from countries that present geopolitical and security risks to our supply chain, Yellen said.&nbsp;

"For too long, countries around the world have been overly dependent on risky countries or a single source for critical inputs," she said. &nbsp;

<h2>US Treasury Secretary in India: Janet Yellen speaks on US, India economic relations</h2>

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"We are proactively deepening economic integration with trusted trading partners like India," she said.

Yellen termed US and India as "natural allies”, saying that both lead by example to show that democracies can deliver for their citizens despite volatility and war.&nbsp;

“Our strategy will also create redundancies in our supply chain to mitigate over-concentration risks. And we are also addressing our reliance on manufacturers whose approaches clash with our human rights values," she said.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/us-announces-400-million-security-assistance-to-ukraine-sums-total-aid-over-186-billion-533076">US's top general wants Ukraine to enter negotiations, Biden advisers disagree</a>

The US official blasted Russian President Vladimir Putin for &nbsp;“weaponising” gas supply to Europe in the wake of his invasion of Ukraine.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/explainer-what-causes-a-delay-in-us-election-results-533154" hreflang="en">Explainer: What causes a delay in US election results?</a>

"Recent disruptions have contributed to higher prices in both of our countries and sapped economic output," she said while referring to energy and commodity prices spiking up in the aftermath of Ukraine&nbsp;invasion.&nbsp;

She said that it serves as “an example of how malicious actors can use their market positions to try to gain geopolitical leverage or disrupt trade for their own gain."&nbsp;

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Washington and New Delhi are working to strengthen their supply chains in order to reduce dependency on “risky countries”, US Treasury Secretary Janet Yellen said in a veiled reference to China and Russia.

Washington and New Delhi are working to strengthen their supply chains in order to reduce dependency on “risky countries”, US Treasury Secretary Janet Yellen said in a veiled reference to China and Russia. Yellen, who is on her maiden visit to India, made these remarks on Friday at an event at Microsoft Inc's facility just outside the national capital Delhi. While introducing the concept of ‘friendshoring', she called on like-minded countries to deepen trade and investments within a group of countries with shared values. Under this 'friendshoring' approach, the US is diversifying away from countries that present geopolitical and security risks to our supply chain, Yellen said. "For too long, countries around the world have been overly dependent on risky countries or a single source for critical inputs," she said. US Treasury Secretary in India: Janet Yellen speaks on US, India economic relations "We are proactively deepening economic integration with trusted trading partners like India," she said. Yellen termed US and India as "natural allies”, saying that both lead by example to show that democracies can deliver for their citizens despite volatility and war. “Our strategy will also create redundancies in our supply chain to mitigate over-concentration risks. And we are also addressing our reliance on manufacturers whose approaches clash with our human rights values," she said. Also read | US's top general wants Ukraine to enter negotiations, Biden advisers disagree The US official blasted Russian President Vladimir Putin for “weaponising” gas supply to Europe in the wake of his invasion of Ukraine. Also read | Explainer: What causes a delay in US election results? "Recent disruptions have contributed to higher prices in both of our countries and sapped economic output," she said while referring to energy and commodity prices spiking up in the aftermath of Ukraine invasion. She said that it serves as “an example of how malicious actors can use their market positions to try to gain geopolitical leverage or disrupt trade for their own gain." WATCH WION LIVE HERE:

On maiden visit to India, US Treasury Secretary calls on like-minded countries to end reliance on China 

Janet Yellen who's presently in India, spoke about the economic relations that the India and US share. She is in India ahead of US' approach to encourage the former to purchase Russian oil under a price that is determined by the US.

US Treasury Secretary in India: Janet Yellen speaks on US, India economic relations

Janet Yellen who's presently in India, spoke about the economic relations that the India and US share. She is in India ahead of US' approach to encourage the former to purchase Russian oil under a price that is determined by the US. She met Nirmala Sitharaman on Friday.

US' Treasury Secretary Janet Yellen meets India's Finance Minister Nirmala Sitharaman

US Secretary Janet Yellen will arrive in India later today to participate in the India-US Economic and Financial partnership dialogue. This comes ahead of her trip to Bali for G20 summit where she will accompany President Joe Biden on the 15th and 16th November.

US Treasury Secretary to visit India; former says, 'Won't stop India from buying Russian Oil'

US Treasury Secretary Janet Yellen to visit India, will meet Finance Minister Nirmala Sitharaman

US Treasury Secretary Janet Yellen on Sunday downplayed fears of a possible recession Sunday but admitted an economic slowdown is occurring.

US Treasury Secretary Janet Yellen downplays recession fears

US Treasury Secretary Janet Yellen said on Sunday that US economic growth is slowing and acknowledged the risk of a recession, but also stated that a downturn was not inevitable.

US recession not inevitable: Janet Yellen

US Treasury Secretary Janet Yellen called for deeper trade ties among allies to fortify their supply chains, combat inflation and thwart China's unfair trade practices.

Yellen calls for strengthening trade ties between US and allies against China

The State Department announced late on Saturday (July 9)&nbsp;that US Secretary Antony Blinken would be extending his travel to Asia to include a stop in Tokyo so that he could express his condolences to the Japanese for the death of former prime minister Shinzo Abe, who has been assassinated. US Treasury Secretary Janet Yellen meanwhile decided to postpone her visit to the Port of Yokohama during, following the murder of Abe, an official announced. However, her bilateral meetings in Japan will still happen, as per the official.&nbsp;

The world’s longest-serving prime minister, Abe was shot on Friday (July 8), while campaigning in one of the safest nations in the world. In an effort to break some of his nation’s post-war pacifism, Abe had established close ties with the US, particularly in the area of defence.

Also read |&nbsp;<a href="https://www.wionews.com/world/undeniable-flaws-in-security-nara-police-chief-takes-responsibility-for-shinzo-abes-assassination-495900">Shinzo Abe's assassination: Local police say there were 'undeniable flaws' in security</a>

Prior to that, US President Joe Biden personally visited the Japanese ambassador’s residence in Washington to sign a condolence book.

Watch |&nbsp;Gravitas: A look back at Shinzo Abe's political legacy

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Blinken, after Group of 20 talks in Bali, said, "Prime Minister Abe really brought that partnership to new heights. The friendship between the Japanese and American people is likewise unshakable. He further added, "So we're standing with the people of Japan, with the prime minister's family, in the aftermath of a truly, truly appalling act of violence."

Also read |&nbsp;<a href="https://www.wionews.com/world/shinzo-abes-killing-tetsuya-yamagami-initially-planned-to-attack-religious-leader-say-police-495852">Shinzo Abe’s killing: Tetsuya Yamagami initially planned to attack religious leader, say Police</a>

Yellen was supposed to visit the port, participate in a roundtable with business executives, tour the facilities and give a speech.&nbsp;During her visit to Asia, Yellen will be attending a gathering of the Group of 20 major economies in Indonesia and speaking with South Korean officials in an effort to rally support for a price ceiling on Russian oil, the Treasury Department said.

(With inputs from agencies)

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The State Department announced late on Saturday (July 9) that US Secretary Antony Blinken would be extending his travel to Asia to include a stop in Tokyo so that he could express his condolences to the Japanese for the death of former prime minister Shinzo Abe, who has been assassinated.

The State Department announced late on Saturday (July 9) that US Secretary Antony Blinken would be extending his travel to Asia to include a stop in Tokyo so that he could express his condolences to the Japanese for the death of former prime minister Shinzo Abe, who has been assassinated. US Treasury Secretary Janet Yellen meanwhile decided to postpone her visit to the Port of Yokohama during, following the murder of Abe, an official announced. However, her bilateral meetings in Japan will still happen, as per the official. The world’s longest-serving prime minister, Abe was shot on Friday (July 8), while campaigning in one of the safest nations in the world. In an effort to break some of his nation’s post-war pacifism, Abe had established close ties with the US, particularly in the area of defence. Also read | Shinzo Abe's assassination: Local police say there were 'undeniable flaws' in security Prior to that, US President Joe Biden personally visited the Japanese ambassador’s residence in Washington to sign a condolence book. Watch | Gravitas: A look back at Shinzo Abe's political legacy Blinken, after Group of 20 talks in Bali, said, "Prime Minister Abe really brought that partnership to new heights. The friendship between the Japanese and American people is likewise unshakable. He further added, "So we're standing with the people of Japan, with the prime minister's family, in the aftermath of a truly, truly appalling act of violence." Also read | Shinzo Abe’s killing: Tetsuya Yamagami initially planned to attack religious leader, say Police Yellen was supposed to visit the port, participate in a roundtable with business executives, tour the facilities and give a speech. During her visit to Asia, Yellen will be attending a gathering of the Group of 20 major economies in Indonesia and speaking with South Korean officials in an effort to rally support for a price ceiling on Russian oil, the Treasury Department said. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US mourns for Shinzo Abe: Blinken to visit Japan to pay condolences, Yellen cancels speech in deference

In order to help American consumers save 18.4 cents a gallon on gasoline, President Joe Biden said that he’s considering a federal holiday on the gasoline tax.

''I hope to have a decision based on the data,'' he told reporters.

Following Russia's invasion of Ukraine in February, gasoline prices started climbing and are currently averaging just under $5 a gallon, according to auto club AAA.

The Biden administration, which is increasingly looking for ways to spare the public from higher prices at the pump, is going to meet this week with CEOs of the major oil companies to discuss rising oil prices.

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Saying they are making excessive profits when people are feeling the crunch of skyrocketing costs at the pump and inflation, Biden lashed out at oil companies.

Biden said, “I want an explanation for why they aren’t refining more oil.”

In addition to sending a letter last week to oil refiners urging them to increase their refining capacity, the Biden administration has already released oil from the US strategic reserve and increased ethanol blending for the summer.

Consumers saved at the pump because of gas tax holidays in Connecticut, Georgia and Maryland, according to estimates released by the Penn Wharton Budget Model.

Expressing an openness to a federal gas tax holiday to give motorists some relief, Treasury Secretary Janet Yellen, during a visit to Canada said the United States is in talks with allies to further restrict Russia's oil revenues by capping the price it would get for its crude. 
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(With inputs from agencies)

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In order to help American consumers save 18.4 cents a gallon on gasoline, President Joe Biden said that he’s considering a federal holiday on the gasoline tax. ''I hope to have a decision based on the data,'' he told reporters.

In order to help American consumers save 18.4 cents a gallon on gasoline, President Joe Biden said that he’s considering a federal holiday on the gasoline tax. ''I hope to have a decision based on the data,'' he told reporters. Following Russia's invasion of Ukraine in February, gasoline prices started climbing and are currently averaging just under $5 a gallon, according to auto club AAA. The Biden administration, which is increasingly looking for ways to spare the public from higher prices at the pump, is going to meet this week with CEOs of the major oil companies to discuss rising oil prices. × Saying they are making excessive profits when people are feeling the crunch of skyrocketing costs at the pump and inflation, Biden lashed out at oil companies. Biden said, “I want an explanation for why they aren’t refining more oil.” In addition to sending a letter last week to oil refiners urging them to increase their refining capacity, the Biden administration has already released oil from the US strategic reserve and increased ethanol blending for the summer. Consumers saved at the pump because of gas tax holidays in Connecticut, Georgia and Maryland, according to estimates released by the Penn Wharton Budget Model. Expressing an openness to a federal gas tax holiday to give motorists some relief, Treasury Secretary Janet Yellen, during a visit to Canada said the United States is in talks with allies to further restrict Russia's oil revenues by capping the price it would get for its crude. (With inputs from agencies) Watch WION's live TV here: ×

Tax holiday: President Biden's plan can help Americans save 18.4 cents a gallon on gasoline

Just days after the US Federal Reserve hiked interest rates, Treasury Secretary Janet Yellen said on Sunday (June 19) that recession in the United States is not "inevitable."

Raising fears of an economic contraction, Yellen conceded that "clearly inflation is unacceptably high."

Attributing it partly to the war in Ukraine, she said she did not believe that "a dropoff in consumer spending is the likely cause of a recession."

Predicting that the pace of inflation would slow in coming months, Yellen argued that the US labor market is "arguably the strongest of the postwar period."

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Soaring inflation and supply-chain snarls exacerbated by the war in Ukraine have increased pessimism after the US economy has recovered strongly from the damage wrought by Covid-19.&nbsp;

According to Yellen, President Joe Biden was reviewing some tariffs imposed on China by former President Donald Trump that made "no strategic sense."

After the US central bank on Wednesday raised the benchmark borrowing rate by 0.75 percentage points, Wall Street stocks tumbled.

With people beginning to hold off on vacation plans, economists see worrying signs that consumer confidence is weakening.

Adobe Analytics reported people are beginning to hold off on vacation plans domestic flight bookings were down 2.3 percent last month.

(With inputs from agencies)

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Just days after the US Federal Reserve hiked interest rates, Treasury Secretary Janet Yellen said on Sunday (June 19) that recession in the United States is not "inevitable.

Just days after the US Federal Reserve hiked interest rates, Treasury Secretary Janet Yellen said on Sunday (June 19) that recession in the United States is not "inevitable." Raising fears of an economic contraction, Yellen conceded that "clearly inflation is unacceptably high." Attributing it partly to the war in Ukraine, she said she did not believe that "a dropoff in consumer spending is the likely cause of a recession." Predicting that the pace of inflation would slow in coming months, Yellen argued that the US labor market is "arguably the strongest of the postwar period." × Soaring inflation and supply-chain snarls exacerbated by the war in Ukraine have increased pessimism after the US economy has recovered strongly from the damage wrought by Covid-19. According to Yellen, President Joe Biden was reviewing some tariffs imposed on China by former President Donald Trump that made "no strategic sense." After the US central bank on Wednesday raised the benchmark borrowing rate by 0.75 percentage points, Wall Street stocks tumbled. With people beginning to hold off on vacation plans, economists see worrying signs that consumer confidence is weakening. Adobe Analytics reported people are beginning to hold off on vacation plans domestic flight bookings were down 2.3 percent last month. (With inputs from agencies) Watch WION's live TV:

Treasury Secretary Janet Yellen says US recession not 'inevitable'

&nbsp;US&nbsp;Treasury Secretary Janet&nbsp;Yellen&nbsp;said on Wednesday that Russia should be expelled from the Group of 20 major economies forum, and the United States will boycott "a number of G20 meetings" if Russian officials show up.

Her comments at a US&nbsp;House Financial Services Committee hearing raised questions about the G20's future role in the wake of Russia's invasion of Ukraine.

Since 2008, the club has served as a key international forum for issues from COVID-19 relief to cross-border debt and also includes China, India, Saudi Arabia and other countries that have been reluctant to condemn Russia's actions.

Also read |&nbsp;<a href="https://www.wionews.com/world/ukraine-war-united-nations-to-vote-on-suspending-russia-from-human-rights-council-469018">Ukraine war: United Nations to vote on suspending Russia from Human Rights Council</a>

Yellen&nbsp;told lawmakers Russia's invasion of Ukraine and the killings of civilians in Bucha "are reprehensible, represent an unacceptable affront to the rules-based global order, and will have enormous economic repercussions in Ukraine and beyond."

The United States and its key allies have placed greater emphasis in recent months on the G7 grouping of industrial democracies, whose interests are more aligned, using G7 meetings to coordinate their response to Russia's war in Ukraine.

Yellen&nbsp;said the Biden administration wants to push Russia out of active participation in major international institutions, but acknowledged it was unlikely that Russia could be expelled from the International Monetary Fund given its rules.

"President Biden's made it clear, and I certainly agree with him, that it cannot be business as usual for Russia in any of the financial institutions,"&nbsp;Yellen&nbsp;said. "He's asked that Russia be removed from the G20, and I've made clear to my colleagues in Indonesia that we will not be participating in a number of meetings if the Russians are there,"&nbsp;Yellen&nbsp;said.

Indonesia holds the presidency this year and will host a finance meeting in July and a leaders summit in November.

A Treasury spokesperson later said that&nbsp;Yellen&nbsp;was referring to an April 20 G20 finance ministers and central bank governors meeting on the sidelines of the IMF and World Bank Spring Meetings in Washington and associated deputies meetings.

The April finance meeting will be held both in-person and virtually and Russia's participation is unclear at present.

Watch |&nbsp;Gravitas Global Headlines: Zelensky addresses Irish Parliament | Candlelight vigil for war victims

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-global-headlines-zelensky-addresses-irish-parliament-candlelight-vigil-for-war-victims-468942/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Russia has said that President Vladimir Putin intends to attend the G20 summit in Bali this year and has received China's backing to stay in the group.

Indonesia could not expel or "disinvite" any G20 members, including Russia, a government official familiar with the matter said, adding whether a country attended was up to that nation.

Energy flexibility

Yellen's testimony came as the Biden administration announced a new round of sanctions to punish Russia, including banning Americans from investing in Russia and locking Sberbank, Russia's largest lender and holder of a third of its bank deposits, out of the U.S. financial system, along with other institutions.

But transactions allowing European allies to purchase Russian oil and natural gas were exempted through special Treasury licenses.

Yellen&nbsp;said that flexibility on Russian energy transactions was needed because many European countries "remain heavily dependent on Russian natural gas, as well as oil, and they are committed to making the transition away from that dependence as rapidly as possible."

But she acknowledged that this would take time.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-russian-forces-completely-withdrawn-from-kyiv-and-chernihiv-ukraine-can-absolutely-win-war-469001">US: Russian forces 'completely' withdrawn from Kyiv and Chernihiv; Ukraine can 'absolutely' win war</a>

A complete ban on oil exports from Russia, the world's third-largest producer after the United States and Saudi Arabia, would likely prompt "skyrocketing" prices that would hurt both the United States and Europe,&nbsp;Yellen&nbsp;said.

She added that she hoped that currently high prices would entice oil companies in the United States and elsewhere to ramp up production in the next six months, which, along with the Biden's release of oil from the US&nbsp;Strategic Petroleum Reserve, may allow for tougher restrictions on Russian oil.

China warning

Yellen&nbsp;also issued a warning to China that Treasury was prepared to turn its sanctions tools against Beijing in the event of Chinese aggression against Taiwan, which China claims as a wayward province.

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-ukraine-war-us-threatens-beijing-with-sanctions-if-it-provides-material-support-to-moscow-468963">Russia-Ukraine war: US threatens Beijing with sanctions if it provides ‘material support’ to Moscow</a>

Asked if the United States would take such steps if Taiwan was threatened, she said: "Absolutely. I believe we've shown that we can. In the case of Russia, we threatened significant consequences. We've imposed significant consequences. And I think that you should not doubt our ability and resolve to do the same in other situations."

US Treasury Secretary Janet Yellen said on Wednesday that Russia should be expelled from the Group of 20 major economies forum, and the United States will boycott "a number of G20 meetings" if Russian officials show up.

US Treasury Secretary Janet Yellen said on Wednesday that Russia should be expelled from the Group of 20 major economies forum, and the United States will boycott "a number of G20 meetings" if Russian officials show up. Her comments at a US House Financial Services Committee hearing raised questions about the G20's future role in the wake of Russia's invasion of Ukraine. Since 2008, the club has served as a key international forum for issues from COVID-19 relief to cross-border debt and also includes China, India, Saudi Arabia and other countries that have been reluctant to condemn Russia's actions. Also read | Ukraine war: United Nations to vote on suspending Russia from Human Rights Council Yellen told lawmakers Russia's invasion of Ukraine and the killings of civilians in Bucha "are reprehensible, represent an unacceptable affront to the rules-based global order, and will have enormous economic repercussions in Ukraine and beyond." The United States and its key allies have placed greater emphasis in recent months on the G7 grouping of industrial democracies, whose interests are more aligned, using G7 meetings to coordinate their response to Russia's war in Ukraine. Yellen said the Biden administration wants to push Russia out of active participation in major international institutions, but acknowledged it was unlikely that Russia could be expelled from the International Monetary Fund given its rules. "President Biden's made it clear, and I certainly agree with him, that it cannot be business as usual for Russia in any of the financial institutions," Yellen said. "He's asked that Russia be removed from the G20, and I've made clear to my colleagues in Indonesia that we will not be participating in a number of meetings if the Russians are there," Yellen said. Indonesia holds the presidency this year and will host a finance meeting in July and a leaders summit in November. A Treasury spokesperson later said that Yellen was referring to an April 20 G20 finance ministers and central bank governors meeting on the sidelines of the IMF and World Bank Spring Meetings in Washington and associated deputies meetings. The April finance meeting will be held both in-person and virtually and Russia's participation is unclear at present. Watch | Gravitas Global Headlines: Zelensky addresses Irish Parliament | Candlelight vigil for war victims Russia has said that President Vladimir Putin intends to attend the G20 summit in Bali this year and has received China's backing to stay in the group. Indonesia could not expel or "disinvite" any G20 members, including Russia, a government official familiar with the matter said, adding whether a country attended was up to that nation. Energy flexibility Yellen's testimony came as the Biden administration announced a new round of sanctions to punish Russia, including banning Americans from investing in Russia and locking Sberbank, Russia's largest lender and holder of a third of its bank deposits, out of the U.S. financial system, along with other institutions. But transactions allowing European allies to purchase Russian oil and natural gas were exempted through special Treasury licenses. Yellen said that flexibility on Russian energy transactions was needed because many European countries "remain heavily dependent on Russian natural gas, as well as oil, and they are committed to making the transition away from that dependence as rapidly as possible." But she acknowledged that this would take time. Also read | US: Russian forces 'completely' withdrawn from Kyiv and Chernihiv; Ukraine can 'absolutely' win war A complete ban on oil exports from Russia, the world's third-largest producer after the United States and Saudi Arabia, would likely prompt "skyrocketing" prices that would hurt both the United States and Europe, Yellen said. She added that she hoped that currently high prices would entice oil companies in the United States and elsewhere to ramp up production in the next six months, which, along with the Biden's release of oil from the US Strategic Petroleum Reserve, may allow for tougher restrictions on Russian oil. China warning Yellen also issued a warning to China that Treasury was prepared to turn its sanctions tools against Beijing in the event of Chinese aggression against Taiwan, which China claims as a wayward province. Also read | Russia-Ukraine war: US threatens Beijing with sanctions if it provides ‘material support’ to Moscow Asked if the United States would take such steps if Taiwan was threatened, she said: "Absolutely. I believe we've shown that we can. In the case of Russia, we threatened significant consequences. We've imposed significant consequences. And I think that you should not doubt our ability and resolve to do the same in other situations."

Yellen says Russia should be expelled from G20, US may boycott some meetings

Globalisation, which has both fans and detractors alike, is being tested like never before after the one-two punch of Covid and&nbsp;war.

The&nbsp;pandemic&nbsp;had already raised questions about the&nbsp;world's reliance on an economic model that has broken trade barriers, but made countries heavily reliant on each other as production was delocalised over the decades.

Companies have been struggling to cope with major bottlenecks in the global supply chain.

Also read |&nbsp;<a href="https://www.wionews.com/world/in-a-series-of-tweets-billionaire-elon-musk-suggests-new-platform-needed-to-compete-with-twitter-465871">In a series of tweets, billionaire Elon Musk suggests new platform needed to compete with Twitter</a>

Russia's&nbsp;war&nbsp;in Ukraine has raised fears about further disruptions, with everything from energy supplies to auto parts to exports of wheat and raw materials under threat.

Larry Fink, the head of financial giant BlackRock, put it bluntly: "The Russian invasion of Ukraine has put an end to the globalisation we have experienced over the last three decades."

"We had already seen connectivity between nations, companies and even people strained by two years of the&nbsp;pandemic," Fink wrote in a letter to shareholders on Thursday.

But US Treasury Secretary, Janet Yellen, disagrees.

"I really have to push back on that," she told CNBC in an interview.&nbsp;

"We're deeply involved in the global economy. I expect that to remain, it is something that has brought benefits to the United States, and many countries around the&nbsp;world."

An animal that evolves

Shortages of surgical masks at the outset of the&nbsp;pandemic&nbsp;in 2020 became a symbol of the&nbsp;world's dependence on Chinese factories for all sorts of goods.

Also read |&nbsp;<a href="https://www.wionews.com/world/russian-army-fired-again-at-a-nuclear-research-facility-in-kharkiv-says-ukraine-465843">Russian army fired again at a nuclear research facility in Kharkiv, says Ukraine</a>

The conflict between Russia and Ukraine has raised concerns about food shortages around the globe as the two agricultural powerhouses are among the major breadbaskets of the&nbsp;world.

It has also put a spotlight on Europe's -- and especially Germany's -- heavy dependence on gas supplies from Russia, now a state under crippling sanctions.

"A number of vulnerabilities" have emerged that show the limits of having supply chains spread out in different locations, the former director general of the&nbsp;World&nbsp;Trade Organization, Pascal Lamy, told AFP.

The global trade tensions have prompted the European Union, for instance, to seek "strategic autonomy" in critical sectors.

The production of semiconductors -- microchips that are vital to industries ranging from video games to cars -- is now a priority for Europe and the United States.

"The&nbsp;pandemic&nbsp;did not bring radical changes in terms of reshoring (bringing back business from overseas)," said Ferdi De Ville, professor at Ghent Institute for International &amp; European Studies.

"But this time it might be different because (the conflict) will have an impact on how businesses think about their investment decisions, their supply chains," he said.

"They have realised that what was maybe unthinkable before the past month has now become realistic, in terms of far-reaching sanctions," said de Ville, author of an article on "The end of&nbsp;globalisation&nbsp;as we know it".

Also read |<a href="https://www.wionews.com/world/russian-people-are-not-our-enemy-us-president-joe-biden-says-465823">&nbsp;Russian people, are not our enemy, US President Joe Biden says</a>

The goal now is to redirect strategic dependence towards allies, what he coined as "friend-shoring" instead of "off-shoring".

A US-EU agreement Friday to create a task force to wean Europe off its reliance on Russian fossil fuels is the most recent example of friend-shoring.

For Lamy, this shows "there is no de-globalisation".

Globalisation, he said, is "an animal that evolves a lot".

Decoupling from China&nbsp;

Globalisation&nbsp;had already faced an existential crisis when former US president Donald Trump launched a trade&nbsp;war&nbsp;with China in 2018, triggering a tit-for-tat exchange of punitive tariffs.

His successor, Joe Biden, invoked the need to "buy American" in his sweeping investment plan to "rebuild America".

"We will buy American to make sure everything from&nbsp;the deck of an aircraft carrier to the steel on highway guardrails&nbsp;are made in America," he said in his State of the Union speech.

One concept that emerged during the Trump years was "decoupling" -- the idea of untangling the US and Chinese economies.

The threat has not subsided, especially with China refusing to condemn Russia's invasion of Ukraine.

Also read |&nbsp;<a href="https://www.wionews.com/world/kremlin-says-its-not-for-biden-to-say-if-putin-stays-in-power-465827">Kremlin says it's not for Biden to say if Putin stays in power</a>

The United States has warned the&nbsp;world's second-biggest economy would face "consequences" if it provides material support to Russia in its&nbsp;war&nbsp;in Ukraine.

China already had other contentious issues with the West, such as Taiwan, the self-ruled democracy which Beijing has vowed to seize one day, by force if necessary.

"It is not in China's interest for now to go into competition with the West," said Xiaodong Bao, portfolio manager at the Edmond de Rothschild Asset Management firm.

But the&nbsp;war&nbsp;in Ukraine is a chance for China to reduce its reliance on the US dollar. The Wall Street Journal reported that Beijing is in talks with Saudi Arabia to buy oil in yuan instead of dollars.

"China will continue to build foundations for the future," Bao said. "The financial decoupling is accelerating."

Watch |&nbsp;Gravitas: The weapons being used in the Ukraine conflict

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-the-weapons-being-used-in-the-ukraine-conflict-464420/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Globalisation, which has both fans and detractors alike, is being tested like never before after the one-two punch of Covid and war. The pandemic had already raised questions about the world's reliance on an economic model that has broken trade barriers, but made countries heavily reliant on each other as production was delocalised over the decades.

Globalisation, which has both fans and detractors alike, is being tested like never before after the one-two punch of Covid and war. The pandemic had already raised questions about the world's reliance on an economic model that has broken trade barriers, but made countries heavily reliant on each other as production was delocalised over the decades. Companies have been struggling to cope with major bottlenecks in the global supply chain. Also read | In a series of tweets, billionaire Elon Musk suggests new platform needed to compete with Twitter Russia's war in Ukraine has raised fears about further disruptions, with everything from energy supplies to auto parts to exports of wheat and raw materials under threat. Larry Fink, the head of financial giant BlackRock, put it bluntly: "The Russian invasion of Ukraine has put an end to the globalisation we have experienced over the last three decades." "We had already seen connectivity between nations, companies and even people strained by two years of the pandemic," Fink wrote in a letter to shareholders on Thursday. But US Treasury Secretary, Janet Yellen, disagrees. "I really have to push back on that," she told CNBC in an interview. "We're deeply involved in the global economy. I expect that to remain, it is something that has brought benefits to the United States, and many countries around the world." An animal that evolves Shortages of surgical masks at the outset of the pandemic in 2020 became a symbol of the world's dependence on Chinese factories for all sorts of goods. Also read | Russian army fired again at a nuclear research facility in Kharkiv, says Ukraine The conflict between Russia and Ukraine has raised concerns about food shortages around the globe as the two agricultural powerhouses are among the major breadbaskets of the world. It has also put a spotlight on Europe's -- and especially Germany's -- heavy dependence on gas supplies from Russia, now a state under crippling sanctions. "A number of vulnerabilities" have emerged that show the limits of having supply chains spread out in different locations, the former director general of the World Trade Organization, Pascal Lamy, told AFP. The global trade tensions have prompted the European Union, for instance, to seek "strategic autonomy" in critical sectors. The production of semiconductors -- microchips that are vital to industries ranging from video games to cars -- is now a priority for Europe and the United States. "The pandemic did not bring radical changes in terms of reshoring (bringing back business from overseas)," said Ferdi De Ville, professor at Ghent Institute for International & European Studies. "But this time it might be different because (the conflict) will have an impact on how businesses think about their investment decisions, their supply chains," he said. "They have realised that what was maybe unthinkable before the past month has now become realistic, in terms of far-reaching sanctions," said de Ville, author of an article on "The end of globalisation as we know it". Also read | Russian people, are not our enemy, US President Joe Biden says The goal now is to redirect strategic dependence towards allies, what he coined as "friend-shoring" instead of "off-shoring". A US-EU agreement Friday to create a task force to wean Europe off its reliance on Russian fossil fuels is the most recent example of friend-shoring. For Lamy, this shows "there is no de-globalisation". Globalisation, he said, is "an animal that evolves a lot". Decoupling from China Globalisation had already faced an existential crisis when former US president Donald Trump launched a trade war with China in 2018, triggering a tit-for-tat exchange of punitive tariffs. His successor, Joe Biden, invoked the need to "buy American" in his sweeping investment plan to "rebuild America". "We will buy American to make sure everything from the deck of an aircraft carrier to the steel on highway guardrails are made in America," he said in his State of the Union speech. One concept that emerged during the Trump years was "decoupling" -- the idea of untangling the US and Chinese economies. The threat has not subsided, especially with China refusing to condemn Russia's invasion of Ukraine. Also read | Kremlin says it's not for Biden to say if Putin stays in power The United States has warned the world's second-biggest economy would face "consequences" if it provides material support to Russia in its war in Ukraine. China already had other contentious issues with the West, such as Taiwan, the self-ruled democracy which Beijing has vowed to seize one day, by force if necessary. "It is not in China's interest for now to go into competition with the West," said Xiaodong Bao, portfolio manager at the Edmond de Rothschild Asset Management firm. But the war in Ukraine is a chance for China to reduce its reliance on the US dollar. The Wall Street Journal reported that Beijing is in talks with Saudi Arabia to buy oil in yuan instead of dollars. "China will continue to build foundations for the future," Bao said. "The financial decoupling is accelerating." Watch | Gravitas: The weapons being used in the Ukraine conflict

New world order? Pandemic and war rattle globalisation

Over a two-hour breakfast of tea and pastries at the Hotel Amigo in Brussels in July, Treasury Secretary Janet Yellen tried to persuade Paschal Donohoe, the Irish finance minister, to abandon Ireland’s rock bottom corporate tax rate and join the global deal the Biden administration was racing to clinch.

The closing pitch was simple: Ireland cannot go back in time. The days of American companies moving their headquarters to Ireland for tax purposes were largely over, and more than 100 countries had already agreed in principle to join the agreement.

That meeting kicked off a three-month push to hash out the most sweeping changes to the international tax system in a century, which culminated in an agreement that President Joe Biden and other leaders of the Group of 20 nations are expected to complete this week in Rome. The deal has become crucial to Biden’s domestic agenda, with the White House and Democrats in Congress now relying on revenue from a new 15% global minimum tax and other changes to help pay for the expansive spending package still being negotiated.

Getting to yes was not easy. In the end, the United States had to convince Ireland that its economy would be better off raising its cherished 12.5% corporate tax rate and joining rather than remaining a tax haven and leaving the global tax system under a cloud of uncertainty. With the European Union needing all 27 nations to be on board, the pressure was on to get Ireland to come around.

Officials from countries involved in the negotiations said the outcome was not clear until hours before the Organization for Economic Cooperation and Development announced Oct. 8 that Ireland and two other holdouts — Estonia and Hungary — had joined the pact.

Nearly 140 countries agreed to adopt a global minimum tax of 15% and settled on terms to tax large, profitable multinational corporations based on where their goods and services are sold, rather than where they operate. The agreement aims to end corporate tax havens that have for decades siphoned tax revenue away from governments, leaving infrastructure and public health needs languishing.

“I think the world had come to understand that at the end of the day, all the countries trying to raise tax revenue are the losers, the companies are the winners, and the workers are the losers,” Yellen said Tuesday. “No country really feels it can act independently to raise taxes because its firms will be uncompetitive, so the only way to do this is to hold hands and say enough is enough.”

The deal is a signature achievement for Yellen, who has spent the past eight months trying to persuade nations to agree on a global tax pact that sputtered during the Trump administration.

The push to reach a deal stemmed from the administration’s concerns about a global race to the bottom on corporate taxation, a phenomenon that was viewed as a big obstacle to Biden’s plan to increase corporate taxes domestically.

The administration viewed persuading the rest of the world to set a global minimum tax as crucial to its own plans to raise the corporate tax rate to 28%, since that would minimize any competitive disadvantage. The Treasury Department estimated that its international tax plans could raise $700 billion in tax revenue over a decade.

To show that the new administration was taking the negotiations seriously, Yellen told her counterparts in February that she was abandoning a Trump administration stance that would have effectively blocked other countries from imposing new taxes on U.S. companies. She offered a plan that would allow the world’s richest companies, regardless of where they are based, to face new taxes in exchange for the removal of digital services taxes.

“It had been a show stopper in these negotiations that had been going on for many years,” Yellen said.

The next big obstacle was settling on a rate. The United States wanted a minimum tax of 21%, very likely a nonstarter for a country such as Ireland, which has relied on its 12.5% tax rate to attract international investment. In May, the United States agreed to continue negotiations on the basis that the rate would be “at least” 15% — while hoping to nudge it higher.

“The turning point has been the support of the American administration,” Bruno Le Maire, France’s finance minister, told The New York Times this month.

To get the deal over the finish line, Yellen relied on two tax experts, Itai Grinberg and Rebecca Kysar, whom she tapped in early February and describes as “invaluable” partners in navigating international negotiations.

Grinberg, a tax law professor at Georgetown University who worked in the Treasury Department during the Bush and Obama administrations, was initially viewed with skepticism by some progressives, who noted that in 2016 and 2017, he lamented America’s “singularly high corporate tax rate” during congressional hearings and called for the rate to be slashed in favor of a consumption tax.

But in early 2020, Grinberg wrote in a Foreign Affairs essay that European digital services taxes could open a dangerous front in the Trump administration’s tariff wars and warned that the “decay of the century-long international tax order is likely to accelerate” without a deal. Later that year, Grinberg alerted Biden’s campaign advisers on how their international tax proposals meshed with the stalled discussions of a global minimum tax. After the election, he joined Biden’s transition team.

Kysar, a professor at the Fordham School of Law and a tax treaty expert, has been a vocal critic of the 2017 Republican tax overhaul. In 2018, she told the Senate Finance Committee that the law’s international tax provisions “fundamentally botched general business taxation.” Kysar had collaborated on research with David Kamin, deputy director of the White House’s National Economic Council, who helped recruit her to join the transition team and administration.

With the Treasury Department working remotely, Grinberg and Kysar spent months juggling Zoom meetings with officials from finance ministries around the world and fielding calls with tax directors from America’s largest companies, which have been anxious about what the agreement will mean for their tax bills.

Working from their basements in Washington and Connecticut, they regularly exchanged emails in real time during negotiations, but they had never met until they traveled to a gathering of finance ministers in Venice in July. At such summits, they would often employ a divide and conquer approach, with Kysar joining Yellen in meetings with her counterparts and Grinberg negotiating separately with Irish tax officials.

The final months of negotiations centered on the United States and Ireland, but with moving parts falling in and out of place from Peru to India, which threatened to back out of the deal shortly before the announcement.

Yellen’s approach with Ireland was to cajole more than to pressure.

“Where once upon a time this tax advantage may have been important to Ireland, Ireland has built a really strong economy with a very well educated labor force,” Yellen said. “It is an extremely attractive base for American multinationals to choose as their EU headquarters.”

In a call with Yellen in early September, Donohoe said that the deal hinged on the United States agreeing to drop language suggesting the rate could be higher than 15%.

Yellen signed off on removing the “at least” 15% language, yet what Donohoe would do was still not clear. That was, until Oct. 7, when he called Yellen and Kysar to say that Ireland was in.

“Ireland is a country that believes that smaller economies like our own do need to be competitive,” Donohoe said. “But we also know that for economies like our own, for societies like our own, we deeply value cooperation, we deeply value compromise.”

To demonstrate American solidarity, Yellen will visit Dublin next month.

The next steps could be even more challenging. A deal among countries does not mean there is agreement within those nations, including the United States, which will need to change America’s tax code and potentially rewrite tax treaties to comply with the agreement. That could require Republican support, which is not guaranteed. Top House and Senate Republicans have assailed the pact, calling the deal a “surrender.” 
&nbsp;

Over a two-hour breakfast of tea and pastries at the Hotel Amigo in Brussels in July, Treasury Secretary Janet Yellen tried to persuade Paschal Donohoe, the Irish finance minister, to abandon Ireland’s rock bottom corporate tax rate and join the global deal the Biden administration was racing to clinch.

Over a two-hour breakfast of tea and pastries at the Hotel Amigo in Brussels in July, Treasury Secretary Janet Yellen tried to persuade Paschal Donohoe, the Irish finance minister, to abandon Ireland’s rock bottom corporate tax rate and join the global deal the Biden administration was racing to clinch. The closing pitch was simple: Ireland cannot go back in time. The days of American companies moving their headquarters to Ireland for tax purposes were largely over, and more than 100 countries had already agreed in principle to join the agreement. That meeting kicked off a three-month push to hash out the most sweeping changes to the international tax system in a century, which culminated in an agreement that President Joe Biden and other leaders of the Group of 20 nations are expected to complete this week in Rome. The deal has become crucial to Biden’s domestic agenda, with the White House and Democrats in Congress now relying on revenue from a new 15% global minimum tax and other changes to help pay for the expansive spending package still being negotiated. Getting to yes was not easy. In the end, the United States had to convince Ireland that its economy would be better off raising its cherished 12.5% corporate tax rate and joining rather than remaining a tax haven and leaving the global tax system under a cloud of uncertainty. With the European Union needing all 27 nations to be on board, the pressure was on to get Ireland to come around. Officials from countries involved in the negotiations said the outcome was not clear until hours before the Organization for Economic Cooperation and Development announced Oct. 8 that Ireland and two other holdouts — Estonia and Hungary — had joined the pact. Nearly 140 countries agreed to adopt a global minimum tax of 15% and settled on terms to tax large, profitable multinational corporations based on where their goods and services are sold, rather than where they operate. The agreement aims to end corporate tax havens that have for decades siphoned tax revenue away from governments, leaving infrastructure and public health needs languishing. “I think the world had come to understand that at the end of the day, all the countries trying to raise tax revenue are the losers, the companies are the winners, and the workers are the losers,” Yellen said Tuesday. “No country really feels it can act independently to raise taxes because its firms will be uncompetitive, so the only way to do this is to hold hands and say enough is enough.” The deal is a signature achievement for Yellen, who has spent the past eight months trying to persuade nations to agree on a global tax pact that sputtered during the Trump administration. The push to reach a deal stemmed from the administration’s concerns about a global race to the bottom on corporate taxation, a phenomenon that was viewed as a big obstacle to Biden’s plan to increase corporate taxes domestically. The administration viewed persuading the rest of the world to set a global minimum tax as crucial to its own plans to raise the corporate tax rate to 28%, since that would minimize any competitive disadvantage. The Treasury Department estimated that its international tax plans could raise $700 billion in tax revenue over a decade. To show that the new administration was taking the negotiations seriously, Yellen told her counterparts in February that she was abandoning a Trump administration stance that would have effectively blocked other countries from imposing new taxes on U.S. companies. She offered a plan that would allow the world’s richest companies, regardless of where they are based, to face new taxes in exchange for the removal of digital services taxes. “It had been a show stopper in these negotiations that had been going on for many years,” Yellen said. The next big obstacle was settling on a rate. The United States wanted a minimum tax of 21%, very likely a nonstarter for a country such as Ireland, which has relied on its 12.5% tax rate to attract international investment. In May, the United States agreed to continue negotiations on the basis that the rate would be “at least” 15% — while hoping to nudge it higher. “The turning point has been the support of the American administration,” Bruno Le Maire, France’s finance minister, told The New York Times this month. To get the deal over the finish line, Yellen relied on two tax experts, Itai Grinberg and Rebecca Kysar, whom she tapped in early February and describes as “invaluable” partners in navigating international negotiations. Grinberg, a tax law professor at Georgetown University who worked in the Treasury Department during the Bush and Obama administrations, was initially viewed with skepticism by some progressives, who noted that in 2016 and 2017, he lamented America’s “singularly high corporate tax rate” during congressional hearings and called for the rate to be slashed in favor of a consumption tax. But in early 2020, Grinberg wrote in a Foreign Affairs essay that European digital services taxes could open a dangerous front in the Trump administration’s tariff wars and warned that the “decay of the century-long international tax order is likely to accelerate” without a deal. Later that year, Grinberg alerted Biden’s campaign advisers on how their international tax proposals meshed with the stalled discussions of a global minimum tax. After the election, he joined Biden’s transition team. Kysar, a professor at the Fordham School of Law and a tax treaty expert, has been a vocal critic of the 2017 Republican tax overhaul. In 2018, she told the Senate Finance Committee that the law’s international tax provisions “fundamentally botched general business taxation.” Kysar had collaborated on research with David Kamin, deputy director of the White House’s National Economic Council, who helped recruit her to join the transition team and administration. With the Treasury Department working remotely, Grinberg and Kysar spent months juggling Zoom meetings with officials from finance ministries around the world and fielding calls with tax directors from America’s largest companies, which have been anxious about what the agreement will mean for their tax bills. Working from their basements in Washington and Connecticut, they regularly exchanged emails in real time during negotiations, but they had never met until they traveled to a gathering of finance ministers in Venice in July. At such summits, they would often employ a divide and conquer approach, with Kysar joining Yellen in meetings with her counterparts and Grinberg negotiating separately with Irish tax officials. The final months of negotiations centered on the United States and Ireland, but with moving parts falling in and out of place from Peru to India, which threatened to back out of the deal shortly before the announcement. Yellen’s approach with Ireland was to cajole more than to pressure. “Where once upon a time this tax advantage may have been important to Ireland, Ireland has built a really strong economy with a very well educated labor force,” Yellen said. “It is an extremely attractive base for American multinationals to choose as their EU headquarters.” In a call with Yellen in early September, Donohoe said that the deal hinged on the United States agreeing to drop language suggesting the rate could be higher than 15%. Yellen signed off on removing the “at least” 15% language, yet what Donohoe would do was still not clear. That was, until Oct. 7, when he called Yellen and Kysar to say that Ireland was in. “Ireland is a country that believes that smaller economies like our own do need to be competitive,” Donohoe said. “But we also know that for economies like our own, for societies like our own, we deeply value cooperation, we deeply value compromise.” To demonstrate American solidarity, Yellen will visit Dublin next month. The next steps could be even more challenging. A deal among countries does not mean there is agreement within those nations, including the United States, which will need to change America’s tax code and potentially rewrite tax treaties to comply with the agreement. That could require Republican support, which is not guaranteed. Top House and Senate Republicans have assailed the pact, calling the deal a “surrender.”

Pastries and persuasion: How a global tax deal got done

The US Treasury is likely to exhaust measures to keep funding the government on October 18, and will run out of cash unless Congress raises the federal borrowing cap, Treasury Secretary Janet Yellen warned Tuesday.

After the date, "Treasury would be left with very limited resources that would be depleted quickly. It is uncertain whether we could continue to meet all the nation's commitments after that date, " she said.

Republicans in the US Senate have stubbornly refused to support an increase or suspension of the debt ceiling, despite having pressed for it under their party's former president Donald Trump.

On Monday, they blocked a Democratic effort to approve a 14-month suspension together with a temporary budget.

The House passed a measure last week to keep the government open until December 3 while they continue debate on a major 10-year social spending package, but the evenly-divided Senate has thus far rejected beginning debate on the bill.

Without an increase, the government would be unable to pay the salaries of public workers, send payments to retirees, or service the nation's debt.

Yellen again warned that prompt approval is critical since "waiting until the last minute can cause serious harm to business and consumer confidence, raise borrowing costs for taxpayers and negatively impact the credit rating of the United States for years to come."

"Failure to act promptly could also result in substantial disruptions to financial markets, as heightened uncertainty can exacerbate volatility and erode investor confidence," she said.

Raising the debt limit does not increase spending, but simply allows the Treasury to finance projects already approved by Congress.

Senate Republican leader Mitch McConnell has used the debt limit as a political bludgeon to protest President Joe Biden's spending plans, and says Democrats must raise the ceiling without opposition support.

Under Trump, the ceiling was suspended for two years on a bipartisan basis after McConnell at the time argued that failing to do so "would be a disaster."

The cap was reinstated on August 1 with the country's debt at $28.4 trillion.

The US Treasury is likely to exhaust measures to keep funding the government on October 18, and will run out of cash unless Congress raises the federal borrowing cap, Treasury Secretary Janet Yellen warned Tuesday.

The US Treasury is likely to exhaust measures to keep funding the government on October 18, and will run out of cash unless Congress raises the federal borrowing cap, Treasury Secretary Janet Yellen warned Tuesday. After the date, "Treasury would be left with very limited resources that would be depleted quickly. It is uncertain whether we could continue to meet all the nation's commitments after that date, " she said. Republicans in the US Senate have stubbornly refused to support an increase or suspension of the debt ceiling, despite having pressed for it under their party's former president Donald Trump. On Monday, they blocked a Democratic effort to approve a 14-month suspension together with a temporary budget. The House passed a measure last week to keep the government open until December 3 while they continue debate on a major 10-year social spending package, but the evenly-divided Senate has thus far rejected beginning debate on the bill. Without an increase, the government would be unable to pay the salaries of public workers, send payments to retirees, or service the nation's debt. Yellen again warned that prompt approval is critical since "waiting until the last minute can cause serious harm to business and consumer confidence, raise borrowing costs for taxpayers and negatively impact the credit rating of the United States for years to come." "Failure to act promptly could also result in substantial disruptions to financial markets, as heightened uncertainty can exacerbate volatility and erode investor confidence," she said. Raising the debt limit does not increase spending, but simply allows the Treasury to finance projects already approved by Congress. Senate Republican leader Mitch McConnell has used the debt limit as a political bludgeon to protest President Joe Biden's spending plans, and says Democrats must raise the ceiling without opposition support. Under Trump, the ceiling was suspended for two years on a bipartisan basis after McConnell at the time argued that failing to do so "would be a disaster." The cap was reinstated on August 1 with the country's debt at $28.4 trillion.

US may exhaust funds by October 18 unless debt limit raised: Treasury Secretary Janet Yellen 

US Treasury Secretary Janet Yellen said Sunday she was "very concerned" about the risk that new variants of coronavirus could pose to the global economic recovery from the pandemic.

"We are very concerned about the Delta variant and other variants that could emerge and threaten recovery," she told reporters following a G20 meeting in Venice, Italy.&nbsp;

"We are a connected global economy, what happens in any part of the world affects all other countries."

In their final statement issued late Saturday, G20 finance ministers warned that the spread of new variants was a "downside risk" to the economic recovery, while also warning of the dangers of differing paces of vaccination campaigns.

"We recognise the importance of working together to speed the process of vaccination and have the goal of wanting to vaccinate 70 per cent of the world's population next year," Yellen said.

She said "a lot has been done" to finance the purchase of vaccines by developing countries, but said the world needed to "do something more and to be more effective" with respect to responding to outbreaks around the world, such as sending therapeutics and protective equipment.

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The G20 on Friday heard from a specially commissioned panel of experts who warned the world must invest much more -- at least $75 billion over the next five years -- to prepare for and try to avert the next pandemic.

"While we're focused on the medium- and long-term... we certainly realise we also need to do more in the near term," Yellen said.

The World Trade Organization, the International Monetary Fund, the World Bank and the World Health Organization "have formed a taskforce to work on this and we've asked that we have regular monthly reports on how that work is going and that we address this issue more fully in October" at the G20 ministers' next meeting.

"But certainly variants represent a threat to the entire globe," Yellen said.

US Treasury Secretary Janet Yellen said Sunday she was "very concerned" about the risk that new variants of coronavirus could pose to the global economic recovery from the pandemic.

US Treasury Secretary Janet Yellen said Sunday she was "very concerned" about the risk that new variants of coronavirus could pose to the global economic recovery from the pandemic. "We are very concerned about the Delta variant and other variants that could emerge and threaten recovery," she told reporters following a G20 meeting in Venice, Italy. "We are a connected global economy, what happens in any part of the world affects all other countries." In their final statement issued late Saturday, G20 finance ministers warned that the spread of new variants was a "downside risk" to the economic recovery, while also warning of the dangers of differing paces of vaccination campaigns. "We recognise the importance of working together to speed the process of vaccination and have the goal of wanting to vaccinate 70 per cent of the world's population next year," Yellen said. She said "a lot has been done" to finance the purchase of vaccines by developing countries, but said the world needed to "do something more and to be more effective" with respect to responding to outbreaks around the world, such as sending therapeutics and protective equipment. Also read | 17 years after founding Virgin Galactic, Branson bound for space The G20 on Friday heard from a specially commissioned panel of experts who warned the world must invest much more -- at least $75 billion over the next five years -- to prepare for and try to avert the next pandemic. "While we're focused on the medium- and long-term... we certainly realise we also need to do more in the near term," Yellen said. The World Trade Organization, the International Monetary Fund, the World Bank and the World Health Organization "have formed a taskforce to work on this and we've asked that we have regular monthly reports on how that work is going and that we address this issue more fully in October" at the G20 ministers' next meeting. "But certainly variants represent a threat to the entire globe," Yellen said.

US 'very concerned' COVID-19 variants could risk recovery, says Yellen

The US proposal envisages a 21% minimum corporate tax rate has got backing from France and Germany. This move will add momentum to efforts to overhaul global rules despite reluctance from some smaller European countries.

The US has proposed that countries should be able to tax more corporate profits based on revenues within their borders in a bid to reach a global taxation deal, according to two people familiar with the offer.

United States Secretary of the Treasury Janet Yellen had thrown the weight of the U.S. government behind a push for a global corporate minimum tax rate, possibly carving a path to a long-sought deal updating international tax rules for the first time in a generation.

“If the Biden administration proposes a 21% rate and there is consensus, it would be acceptable for us,” French Finance Minister Bruno Le Maire said.

WHY A GLOBAL MINIMUM TAX?

Major economies are aiming to discourage multinational companies from shifting profits - and tax revenues - to low-tax countries regardless of where their sales are made. Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions, allowing companies to avoid paying higher taxes in their traditional home countries.

With a broadly agreed global minimum tax, the Biden administration hopes to reduce such tax base erosion without putting American firms at a financial disadvantage, allowing them to compete on innovation, infrastructure and other attributes.

The Trump administration took a first stab at capturing revenues lost to tax havens with a U.S. corporate offshore minimum tax in 2017. The "Global Intangible Low-Taxed Income," or GILTI, the tax rate was only 10.5% - half the domestic corporate tax rate.

HOW WOULD A GLOBAL MINIMUM TAX WORK?

The global minimum tax rate would apply to companies' overseas profits. Therefore, if countries agree on a global minimum, governments could still set whatever local corporate tax rate they want.

But if companies pay lower rates in a particular country, their home governments could "top-up" their taxes to the agreed minimum rate, eliminating the advantage of shifting profits to a tax haven.

The Biden administration has said it wants to deny exemptions for taxes paid to countries that don't agree to a minimum rate.

The OECD said last month that governments broadly agreed already on the basic design of the minimum tax although the rate remains to be agreed upon. International tax experts say that is the thorniest issue.

Other items still to be negotiated include whether industries like investment funds and real estate investment trusts should be covered, when to apply the new rate and ensuring it is compatible with the 2017 U.S. tax reforms aimed at deterring tax-base erosion.

(With inputs from agencies)

The US proposal envisages a 21% minimum corporate tax rate has got backing from France and Germany. This move will add momentum to efforts to overhaul global rules despite reluctance from some smaller European countries.

The US proposal envisages a 21% minimum corporate tax rate has got backing from France and Germany. This move will add momentum to efforts to overhaul global rules despite reluctance from some smaller European countries. The US has proposed that countries should be able to tax more corporate profits based on revenues within their borders in a bid to reach a global taxation deal, according to two people familiar with the offer. United States Secretary of the Treasury Janet Yellen had thrown the weight of the U.S. government behind a push for a global corporate minimum tax rate, possibly carving a path to a long-sought deal updating international tax rules for the first time in a generation. “If the Biden administration proposes a 21% rate and there is consensus, it would be acceptable for us,” French Finance Minister Bruno Le Maire said. WHY A GLOBAL MINIMUM TAX? Major economies are aiming to discourage multinational companies from shifting profits - and tax revenues - to low-tax countries regardless of where their sales are made. Increasingly, income from intangible sources such as drug patents, software and royalties on intellectual property has migrated to these jurisdictions, allowing companies to avoid paying higher taxes in their traditional home countries. With a broadly agreed global minimum tax, the Biden administration hopes to reduce such tax base erosion without putting American firms at a financial disadvantage, allowing them to compete on innovation, infrastructure and other attributes. The Trump administration took a first stab at capturing revenues lost to tax havens with a U.S. corporate offshore minimum tax in 2017. The "Global Intangible Low-Taxed Income," or GILTI, the tax rate was only 10.5% - half the domestic corporate tax rate. HOW WOULD A GLOBAL MINIMUM TAX WORK? The global minimum tax rate would apply to companies' overseas profits. Therefore, if countries agree on a global minimum, governments could still set whatever local corporate tax rate they want. But if companies pay lower rates in a particular country, their home governments could "top-up" their taxes to the agreed minimum rate, eliminating the advantage of shifting profits to a tax haven. The Biden administration has said it wants to deny exemptions for taxes paid to countries that don't agree to a minimum rate. The OECD said last month that governments broadly agreed already on the basic design of the minimum tax although the rate remains to be agreed upon. International tax experts say that is the thorniest issue. Other items still to be negotiated include whether industries like investment funds and real estate investment trusts should be covered, when to apply the new rate and ensuring it is compatible with the 2017 U.S. tax reforms aimed at deterring tax-base erosion. (With inputs from agencies)

Global minimum corporate tax: US gets support from France, Germany on a 21% tax plan

Indian Finance Minister Nirmala Sitharaman has spoken over the phone with US Treasury Secretary Janet Yellen. The Treasury Chief conveyed her intention to work closely with India and appreciated India's role as a critical partner in fighting the COVID-19 pandemic.

Indian FM Sitharaman speaks to US Treasury Chief Janet Yellen

Indian Finance Minister Sitharaman lauds US COVID Relief Bill

US' new Treasury Secretary Janet Yellen took charge amid weak economic rebound. As President Biden received his first formal economic briefing from Treasury Chief Yellen, he renewed the call of speedy actions on passing another stimulus package.

Biden, Yellen push for mega relief package

Janet Yellen has made history by becoming the United States' first female Secretary of Treasury. The Senate voted 84-15 to confirm Yellen, with all opposition coming from Republicans.

US Senate votes Janet Yellen to become Treasury Chief

Janet Yellen has made history by becoming the United States' first female Secretary of Treasury. Janet will be guiding Biden administration's economic plan.

Janet Yellen became first female US treasury secretary

US&nbsp;President-elect Joe Biden&nbsp;on Monday selected former Federal Reserve chair, Janet Yellen, as his choice for Treasury secretary.

Biden's transition team said in a statement "Janet Yellen is nominated to serve as Secretary of the Treasury. If confirmed, she will be the first woman to lead the Treasury Department in its 231-year history."

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In Yellen, Biden will have a battle-tested policymaker who can draw on her nearly two decades at the Fed to help rebuild an economy in dire need of government cash and confidence. Biden has called for trillions of dollars in new stimulus to aid the small and mid-size businesses that are the nation’s jobs engine.

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Yellen’s expected to champion what she’s called “extraordinary fiscal support” to support the pandemic-ridden economy,&nbsp;deficit spending that she says is affordable given extraordinarily low-interest rates.

The Democrat's picks include Wally Adeyemo as deputy treasury secretary, Neera Tanden as director of the Office of Management and Budget, and Cecilia Rouse to lead the Council of Economic Advisers, the transition team said.

<iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/us-president-elect-joe-biden-picks-all-women-senior-communication-team-346357/embed" style="width:100%;max-width:560px;" width="560"></iframe>

Biden, a Democrat, also plans to pick Wally Adeyemo, a senior international economic adviser during the Obama administration, to serve as Janet Yellen's top deputy at the Treasury Department, the Journal reported, citing people familiar with the matter.

Economists Jared Bernstein and Heather Boushey will be nominated to serve as members of the Council of Economic Advisers, the report added.

Before taking the reins at the Center for American Progress, a center-left think tank, Tanden was a healthcare adviser in former President Barack Obama's administration. She was also an adviser for Democrat Hillary Clinton's 2016 presidential campaign.

Rouse, a labour economist at Princeton University, whose research has focused on the economics of education, previously served as a member of Obama's Council of Economic Advisers.

Adeyemo was a senior White House national security adviser for international economics during the Obama administration, as well as a top aide to former Treasury Secretary Jack Lew. He is currently president of the Obama Foundation

Bernstein, one of Biden's closest aides, served as his chief economic adviser as Biden, then the vice president, and Obama fought to pull the United States out of the Great Recession.

He was tasked with calculating and explaining how many jobs the Obama administration's hard-fought recovery act saved in 2009, and was widely expected to have a similarly prominent role in a Biden administration,

Boushey is known for research focusing on how inequality can hinder economic growth. The chief executive and co-founder of the Washington Center for Equitable Growth, a progressive economic think tank, Boushey has been working with the Biden team as an unofficial economic adviser.

Just like Obama did in 2009, Biden will inherit a struggling economy facing serious near-term challenges.

Nearly 14 million Americans, many of who used to be employed in the restaurant and hospitality industries, are receiving unemployment benefits that expire on December&nbsp;26, and the coronavirus'&nbsp;continued surge means there is no telling when they might be able to go back to work.

Biden's economic agenda is likely to focus on getting the country past the coronavirus crisis, both as a health and economic issue. A lot will depend on the passage of a pandemic relief package and the distribution of a vaccine that is expected in early 2021.

US President-elect Joe Biden on Monday selected former Federal Reserve chair, Janet Yellen, as his choice for Treasury secretary. Biden's transition team said in a statement "Janet Yellen is nominated to serve as Secretary of the Treasury.

US President-elect Joe Biden on Monday selected former Federal Reserve chair, Janet Yellen, as his choice for Treasury secretary. Biden's transition team said in a statement "Janet Yellen is nominated to serve as Secretary of the Treasury. If confirmed, she will be the first woman to lead the Treasury Department in its 231-year history." In Yellen, Biden will have a battle-tested policymaker who can draw on her nearly two decades at the Fed to help rebuild an economy in dire need of government cash and confidence. Biden has called for trillions of dollars in new stimulus to aid the small and mid-size businesses that are the nation’s jobs engine. Also read: Joe Biden to nominate Indian-American Neera Tanden as budget chief: Report Yellen’s expected to champion what she’s called “extraordinary fiscal support” to support the pandemic-ridden economy, deficit spending that she says is affordable given extraordinarily low-interest rates. The Democrat's picks include Wally Adeyemo as deputy treasury secretary, Neera Tanden as director of the Office of Management and Budget, and Cecilia Rouse to lead the Council of Economic Advisers, the transition team said. Biden, a Democrat, also plans to pick Wally Adeyemo, a senior international economic adviser during the Obama administration, to serve as Janet Yellen's top deputy at the Treasury Department, the Journal reported, citing people familiar with the matter. Economists Jared Bernstein and Heather Boushey will be nominated to serve as members of the Council of Economic Advisers, the report added. Before taking the reins at the Center for American Progress, a center-left think tank, Tanden was a healthcare adviser in former President Barack Obama's administration. She was also an adviser for Democrat Hillary Clinton's 2016 presidential campaign. Rouse, a labour economist at Princeton University, whose research has focused on the economics of education, previously served as a member of Obama's Council of Economic Advisers. Adeyemo was a senior White House national security adviser for international economics during the Obama administration, as well as a top aide to former Treasury Secretary Jack Lew. He is currently president of the Obama Foundation Bernstein, one of Biden's closest aides, served as his chief economic adviser as Biden, then the vice president, and Obama fought to pull the United States out of the Great Recession. He was tasked with calculating and explaining how many jobs the Obama administration's hard-fought recovery act saved in 2009, and was widely expected to have a similarly prominent role in a Biden administration, Boushey is known for research focusing on how inequality can hinder economic growth. The chief executive and co-founder of the Washington Center for Equitable Growth, a progressive economic think tank, Boushey has been working with the Biden team as an unofficial economic adviser. Just like Obama did in 2009, Biden will inherit a struggling economy facing serious near-term challenges. Nearly 14 million Americans, many of who used to be employed in the restaurant and hospitality industries, are receiving unemployment benefits that expire on December 26, and the coronavirus' continued surge means there is no telling when they might be able to go back to work. Biden's economic agenda is likely to focus on getting the country past the coronavirus crisis, both as a health and economic issue. A lot will depend on the passage of a pandemic relief package and the distribution of a vaccine that is expected in early 2021.

Joe Biden selects Janet Yellen as his choice for Treasury secretary

United States President Donald Trump&#39;s pick for the Federal Reserve Chair (Fed), Jerome Powell, Tuesday at the Senate will promise to continue with the strategy of current Fed Chair Janet Yellen as part of the gradual monetary adjustment.

Powell will appear Tuesday in the Senate confirmation hearing and the Fed already forwarded the speech he is expected to make.

&quot;If confirmed, I would strive, along with my colleagues, to support the economy&#39;s continued progress toward full recovery,&quot; Powell said in the speech forwarded by the Fed.

&quot;Our aim is to sustain a strong jobs market with inflation moving gradually up toward our target,&quot; he said. 
Although he admitted that the financial system is certainly stronger and tougher than a decade ago, Powell is open to considering &quot;appropriate ways to ease regulatory burdens while preserving core reforms.&quot;

Powell, 64, has been a member of the Board of Governors of the Federal Reserve System since 2012 at the proposal of former President Barack Obama.

If voted, he will inherit an enviable economic situation, with the unemployment rate at 4.1 percent, levels unseen from 2001 and near full employment, along with an annual growth rate of more than 3 percent in the last two quarters.

The only shadow is persistent and low inflation which remains below the annual target of 2 percent marked by the Fed and does not rebound despite the good health of the world&#39;s leading economy.

In June, the Fed increased interest rates by a quarter of a percentage point in the range of between 1 and 1.25 percent for the fourth time since the financial crisis.

The Fed is expected to raise the price of money again during a meeting in Washington on December&nbsp;12 and 13.

Powell will also inherit a Fed that initiates a process to gradually reduce the bulky balance of assets acquired to stimulate the economy after the financial crisis, which went from a trillion dollars in 2008 to $4.5 trillion at present.

(All the rights of the contents (text, photo, video, multimedia products and others) included in the services supplied to the user in this test are EFE-EPA property and shall be reproduced under EFE-EPA @copyright. Contents shall be reproduced only in the terms agreed with EFE and by no mean can those be redistributed, transferred or traded. User shall be held responsible for the alteration or misuse of the contents and products included in EFE-EPA services. User is compelled to follow the national law and will be the only responsible for the use or misuse of the contents provided by EFE-EPA.)

Powell will appear on Tuesday in the Senate confirmation hearing and the Fed already forwarded the speech he is expected to make.

United States President Donald Trump's pick for the Federal Reserve Chair (Fed), Jerome Powell, Tuesday at the Senate will promise to continue with the strategy of current Fed Chair Janet Yellen as part of the gradual monetary adjustment. Powell will appear Tuesday in the Senate confirmation hearing and the Fed already forwarded the speech he is expected to make. "If confirmed, I would strive, along with my colleagues, to support the economy's continued progress toward full recovery," Powell said in the speech forwarded by the Fed. "Our aim is to sustain a strong jobs market with inflation moving gradually up toward our target," he said. Although he admitted that the financial system is certainly stronger and tougher than a decade ago, Powell is open to considering "appropriate ways to ease regulatory burdens while preserving core reforms." Powell, 64, has been a member of the Board of Governors of the Federal Reserve System since 2012 at the proposal of former President Barack Obama. If voted, he will inherit an enviable economic situation, with the unemployment rate at 4.1 percent, levels unseen from 2001 and near full employment, along with an annual growth rate of more than 3 percent in the last two quarters. The only shadow is persistent and low inflation which remains below the annual target of 2 percent marked by the Fed and does not rebound despite the good health of the world's leading economy. In June, the Fed increased interest rates by a quarter of a percentage point in the range of between 1 and 1.25 percent for the fourth time since the financial crisis. The Fed is expected to raise the price of money again during a meeting in Washington on December 12 and 13. Powell will also inherit a Fed that initiates a process to gradually reduce the bulky balance of assets acquired to stimulate the economy after the financial crisis, which went from a trillion dollars in 2008 to $4.5 trillion at present. (All the rights of the contents (text, photo, video, multimedia products and others) included in the services supplied to the user in this test are EFE-EPA property and shall be reproduced under EFE-EPA @copyright. Contents shall be reproduced only in the terms agreed with EFE and by no mean can those be redistributed, transferred or traded. User shall be held responsible for the alteration or misuse of the contents and products included in EFE-EPA services. User is compelled to follow the national law and will be the only responsible for the use or misuse of the contents provided by EFE-EPA.)

Jerome Powell, Trump's pick for Federal Reserve Chair, promises continuity

President Donald Trump has nominated Federal Reserve Governor Jerome &quot;Jay&quot; Powell to lead the US central bank, saying the former investment banker has the wisdom and intelligence to guide the world&#39;s largest economy.

Trump decided not to reappoint current Fed Chair Janet Yellen, the first woman to oversee monetary policy, despite praising her excellent management of the US economy over the past four years.

&quot;He is strong. He&#39;s committed. He&#39;s smart,&quot; Trump said of Powell yesterday during the ceremony in the White House Rose Garden. &quot;He has proven to be a consensus builder.&quot;

&quot;Based on his record I am confident that Jay has the wisdom and leadership to guide our economy through any challenges that our great economy may face.&quot;

Analysts say choosing Powell allows Trump to put his own imprimatur on the central bank with a minimum of disruption.

&quot;Powell allows Trump to change the Fed leadership without changing the basic monetary policy strategy. That strategy has been largely successful,&quot; said University of Oregon economist Tim Duy.

The president&#39;s decision to replace the sitting Fed chair is something no first-term US president had done in 40 years.

He has made it clear he has no problem upsetting tradition, and specifically cited his desire to leave his mark on the Fed during the very public search process. Still, in choosing the 64-year-old Powell, a Republican, Trump took a less radical course.

Powell has echoed the administration&#39;s views in favour of bank deregulation but has supported the Yellen Fed&#39;s very gradual interest rate increases.

Trump has repeatedly hailed the country&#39;s smooth economic progress and Wall Street&#39;s successive rallies, making the prospect of disrupting the status quo at the Fed particularly risky.

Powell is the latest in a string of former investment bankers Trump has tapped for high-profile posts.

He will require Senate confirmation, but he already went through that process when he became a member of the Fed&#39;s board of governors.

Trump noted that his Fed pick has &quot;a unique background of prior government service and business experience.&quot;

&quot;As a result he understands what it takes for our economy to grow,&quot; Trump said.

Powell has a declared personal fortune ranging between about USD 20 million and USD 55 million after nearly a decade at the Washington-based private equity firm Carlyle Group, where fellow Fed Governor Randal Quarles once worked as well.

In another break with tradition, Powell is not a trained economist. Even so Terry Sheehan of Oxford Economics said he has received a working education and is &quot;well qualified&quot; to serve as Fed chair. 
But she warned he may have to defend the Fed&#39;s independence &quot;in a hostile political environment.&quot;

In accepting the nomination, Powell said he would ensure the Fed &quot;remains vigilant and prepared to respond to changes in markets and evolving risks,&quot; but he also cited the independence of the Fed in setting monetary policy.

Trump and Powell offered extensive praise for Yellen, who they said demonstrated judicious economic stewardship during the current recovery.

Yellen congratulated Powell on his nomination and said she would work to ensure a &quot;smooth transition&quot; in February.&nbsp;

President Donald Trump has nominated Federal Reserve Governor Jerome "Jay" Powell to lead the US central bank, saying the former investment banker has the wisdom and intelligence to guide the world's largest economy.

President Donald Trump has nominated Federal Reserve Governor Jerome "Jay" Powell to lead the US central bank, saying the former investment banker has the wisdom and intelligence to guide the world's largest economy. Trump decided not to reappoint current Fed Chair Janet Yellen, the first woman to oversee monetary policy, despite praising her excellent management of the US economy over the past four years. "He is strong. He's committed. He's smart," Trump said of Powell yesterday during the ceremony in the White House Rose Garden. "He has proven to be a consensus builder." "Based on his record I am confident that Jay has the wisdom and leadership to guide our economy through any challenges that our great economy may face." Analysts say choosing Powell allows Trump to put his own imprimatur on the central bank with a minimum of disruption. "Powell allows Trump to change the Fed leadership without changing the basic monetary policy strategy. That strategy has been largely successful," said University of Oregon economist Tim Duy. The president's decision to replace the sitting Fed chair is something no first-term US president had done in 40 years. He has made it clear he has no problem upsetting tradition, and specifically cited his desire to leave his mark on the Fed during the very public search process. Still, in choosing the 64-year-old Powell, a Republican, Trump took a less radical course. Powell has echoed the administration's views in favour of bank deregulation but has supported the Yellen Fed's very gradual interest rate increases. Trump has repeatedly hailed the country's smooth economic progress and Wall Street's successive rallies, making the prospect of disrupting the status quo at the Fed particularly risky. Powell is the latest in a string of former investment bankers Trump has tapped for high-profile posts. He will require Senate confirmation, but he already went through that process when he became a member of the Fed's board of governors. Trump noted that his Fed pick has "a unique background of prior government service and business experience." "As a result he understands what it takes for our economy to grow," Trump said. Powell has a declared personal fortune ranging between about USD 20 million and USD 55 million after nearly a decade at the Washington-based private equity firm Carlyle Group, where fellow Fed Governor Randal Quarles once worked as well. In another break with tradition, Powell is not a trained economist. Even so Terry Sheehan of Oxford Economics said he has received a working education and is "well qualified" to serve as Fed chair. But she warned he may have to defend the Fed's independence "in a hostile political environment." In accepting the nomination, Powell said he would ensure the Fed "remains vigilant and prepared to respond to changes in markets and evolving risks," but he also cited the independence of the Fed in setting monetary policy. Trump and Powell offered extensive praise for Yellen, who they said demonstrated judicious economic stewardship during the current recovery. Yellen congratulated Powell on his nomination and said she would work to ensure a "smooth transition" in February.

Trump taps Jerome Powell to lead US Federal Reserve

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