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Yellen Due In India For G20 Leaders’ Summit

While in New Delhi, Secretary Yellen will continue to rally “America’s partners to maintain our collective economic support for Ukraine, including through contributions from across our coalition.” …reports Asian Lite News

US Secretary of the Treasury Janet L Yellen will participate in the G20 Leaders’ Summit from September 7 to September 10 in New Delhi, the White House (WH) said.

On her fourth visit to India in 10 months, Secretary Yellen will focus on strengthening the global economy and supporting low and middle-income countries by advancing the Multilateral Development Bank (MDB) evolution, debt restructuring, and the IMF’s Poverty Reduction and Growth Trust (PRGT).

“Secretary Yellen will continue to build momentum for the collective effort that she helped launched last October to evolve the multilateral development banks so the MDBs have the right vision, incentives, operational models and financing capacity to address critical global priorities like combatting climate change, addressing pandemics and global health security, and tackling fragility and conflict,” the WH said in a release on Thursday.

Treasury estimates that the MDBs as a system could unlock USD 200 billion over the next decade just from the measures already being implemented or under deliberation as part of this process – with the potential for even more if MDBs undertake some of the longer-term and more complex recommendations in the G20 Capital Adequacy Framework report, including on callable capital, according to the official release.

While in New Delhi, Secretary Yellen will continue to rally “America’s partners to maintain our collective economic support for Ukraine, including through contributions from across our coalition.” She will also highlight the importance of imposing severe costs on Russia and mitigating global spillovers, the release said.

“Secretary Yellen and our partners will work to address the consequences of Russia’s unprovoked war to global growth and poverty reduction, including through the price cap, which has been achieving its dual goals of reducing Russian revenue while keeping global energy prices stable, as well as efforts to strengthen global food security through the MDBs, leveraging multilateral tools such as the Global Agriculture and Food Security Program (GAFSP), and working towards a successful replenishment of the International Fund for Agricultural Development (IFAD),” the White House release said.

“Finally, Secretary Yellen will continue to deepen the US’ bilateral relationship with India. During her visit, Secretary Yellen will further this relationship by engaging with Indian counterparts and the Indian people to discuss common priorities like expanding our bilateral economic ties – as she discussed in remarks last November in New Delhi – and by cooperating on global challenges,” it said.

Secretary Yellen will also participate in engagements on the margins of the G20 and will hold bilateral meetings with counterparts. “Additionally, she will join the President for several of his engagements on the margins of the meetings,” the release added. (ANI)

ALSO READ-Yellen lauds India’s G20 leadership on debt issues 

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Yellen lauds India’s G20 leadership on debt issues 

US Treasury Secretary says the world is looking to the G20 to make progress on key challenges like climate change and pandemics…reports Asian Lite News

US Treasury Secretary Janet Yellen on Monday said that Washington appreciates India’s leadership during its G20 Presidency and New Delhi’s demonstrated leadership on debt issues.

Yellen said, as the world is looking forward to the G20 to make progress on key challenges like climate change and pandemics, both countries would take significant, concrete steps forward in meetings ahead. “The United States has appreciated India’s leadership during its G20 presidency, and we will continue our close cooperation. The world is looking to the G20 to make progress on key challenges like climate change and pandemics as part of our work to strengthen the global economy and to support developing countries. I am hopeful we can take significant concrete steps forward in our meetings,” Yellen said while addressing a press conference earlier today in Gandhinagar.

The US Treasury Secretary delivered the remarks after a meeting with Finance Minister Nirmala Sitharaman.

Speaking on the Multilateral Development Banks (MDB), Yellen said, “I appreciate India’s demonstrated leadership on debt issues as G20 president, including your support for G20 efforts to improve the multilateral debt restructuring process. I also welcome India’s focus on advancing the evolution of the multilateral development banks, or MDBs,” adding that it is very important to use meetings like this to strengthen the coalition of shareholders that are working to bring reforms with respect to the MDBs’ vision.

“We estimate that the MDBs as a system could unlock USD 200 billion over the next decade just from the measures already being implemented or under deliberation as part of this process.

The recently released G20 MDB Experts Group report is one recent useful input to this work, though we must only explore capital increases after the reforms in these areas have progressed further,” Yellen continued.

Moreover, she also spoke on Ajay Banga’s candidacy to lead World Bank and voiced her support for it.

“We believe that he is providing the right leadership to deliver on these critical reforms.

It is also important to address the immediate need to boost the Bank’s concessional lending capacity for global challenges and support low-income countries to supplement ongoing efforts. Indian partnership in this effort will be a key to its success,” Yellen said at the press conference in Gandhinagar today.

On US-India collaboration, the US Treasury Secretary noted that the partnership between the two nations spans a range of economic issues, including commercial and technological collaboration, strengthening supply chains, and catalyzing the clean energy transition.

“Beyond our cooperation at the G20, we highly value our bilateral relationship with India. As illustrated by Prime Minister Modi’s recent State Visit to Washington, the United States and India are among the closest partners in the world. And I’ve been proud to help lead our work on that relationship,” she added.

In order to fast-track its energy transition, the United States (US) is working with India on an investment platform to deliver a lower cost of capital and increased private investment, Yellen added.

Addressing a press conference in Gandhinagar, Yellen said that the collaboration between the two nations spans a wide range of issues, including catalyzing the clean energy transition. Yellen said, “Our collaboration spans a range of economic issues, including commercial and technological collaboration, strengthening supply chains, and catalyzing the clean energy transition.”

“In particular, we look forward to working with India on an investment platform to deliver a lower cost of capital and increased private investment to speed up India’s energy transition.”

The US Treasury Secretary further added that she also values India’s emphasis on completing the landmark Two-Pillar global tax agreement in the inclusive framework.

“I also appreciate India’s focus on finalizing the historic Two-Pillar global tax deal in the Inclusive Framework, and I believe that we are close to reaching an agreement. We had a productive meeting in New Delhi last fall as part of the US-India Economic and Financial Partnership, or EFP, and I look forward to convening the 10th EFP meeting,” the US Treasury Secretary added.

Yellen and Sitharaman met in Gandhinagar on the sidelines of the third G20 Finance Ministers and Central Bank Governors (FMCBGs) meeting under the Indian G20 Presidency.

The leaders discussed issues such as strengthening the multilateral development banks and harnessing opportunities presented by crypto assets.

Sitharaman pointed out that the recent state visit of Prime Minister Narendra Modi to the United States last month and his meeting with the US President enhanced the strength and dynamism of the US-India partnership.

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Yellen tells bank CEOs more mergers may be necessary

Yellen echoed remarks from US regulators who have said there may be bank mergers in the current environment, one person familiar with the matter said…reports Asian Lite News

US Treasury Secretary Janet Yellen told executives that more bank mergers may be necessary as the industry continues to navigate through a crisis, CNN Business reported, citing two people familiar with the matter. She was speaking during Thursday’s meeting with the CEOs of large banks.

The comments from Yellen provided further evidence that Biden officials are starting to warm up to the idea of bank mergers despite concerns from progressives and the administration’s own scrutiny of corporate concentration. The worst banking crisis since 2008, marked by a series of bank failures, plunging stock prices and concern about the business model of regional and mid-size banks, has forced a regulatory rethink. Regulators, of course, prefer corporate mergers where strong banks take over weaker ones over destabilising bank failures, CNN Business said.

“Consolidation is inevitable,” said Ed Mills, Washington policy analyst at Raymond James. “The progressive backlash is the Catch-22.”

Against this backdrop, Yellen met in Washington on Thursday with JPMorgan Chase CEO Jamie Dimon, Citigroup CEO Jane Fraser and other board members of the Bank Policy Institute, CNN Business reported.

CNN Business said the readout provided by the Treasury Department following that meeting noted that Yellen addressed the banking stress, reaffirming the “strength and soundness of the US banking system” and thanking the bankers for “their leadership and support.” But that readout did not mention a discussion of bank mergers.

However, sources tell CNN Business that bank mergers were discussed during Yellen’s meeting with bank CEOs.

Yellen echoed remarks from US regulators who have said there may be bank mergers in the current environment, one person familiar with the matter said.

Yellen also expressed confidence that the nation’s diverse banking system, which includes institutions of many sizes, is on a solid foundation in the wake of recent events, CNN Business said, citing the source. (ANI)

ALSO READ-Yellen warns of possible US debt default by June 1

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Janet Yellen visiting India to bolster ties

Yellen’s visit is aimed at bolstering US-India economic ties…reports Asian Lite News

Finance Minister Nirmala Sitharaman and US Treasury Secretary Janet Yellen will lead the ninth meeting of India-US Economic Financial Partnership (EFP) on Friday.

During the India-US EFP meeting, both sides will discuss issues of mutual interest including climate finance, multilateral issues, India-US cooperation at G20 under India’s Presidency, taxation, supply chain resilience, global economy and macroeconomic outlook, the Finance Ministry informed through a series of tweets.

On the sidelines of the EFP meeting, Sitharaman and Yellen will also participate in a roundtable interaction on India-US business and economic opportunities with top business leaders and eminent economists.

Yellen’s visit is aimed at bolstering US-India economic ties.

Apart from participating in the EFP meeting, she will visit the Microsoft India Development Centre to meet technology sector leaders.

ALSO READ-Yellen to participate in US-India partnership talks in New Delhi

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Yellen to participate in US-India partnership talks in New Delhi

Secretary Yellen will then hold a bilateral meeting with Indian Minister of Finance and Minister of Corporate Affairs Nirmala Sitharaman…reports Asian Lite News

US Treasury Secretary Janet L Yellen will participate in the US-India Economic and Financial Partnership in New Delhi on November 11.

During her stay, Secretary Yellen will highlight the strength of the United States’ partnership with India, which continues to deepen, the US Department of the Treasury said on Friday as it announced the visit.

The Secretary will meet with technology sector leaders and visit the Microsoft India Development Center, where she will deliver remarks on the United States’ economic partnership with India.

Secretary Yellen will then hold a bilateral meeting with Indian Minister of Finance and Minister of Corporate Affairs Nirmala Sitharaman.

Following the US-India Economic and Financial Partnership (EFP) dialogue, the Secretary will join Minister Sitharaman for a fireside discussion with executives from major Indian companies and American companies operating in India.

To conclude the day, Secretary Yellen and Minister Sitharaman will sign a joint statement on the EFP dialogue, the US Department of the Treasury said.

“Throughout her visit to India, Secretary Yellen will discuss how the United States and India have worked together to deepen their economic ties,” the US Department of the Treasury said in its press release.

“Secretary Yellen will highlight the close ties between American and Indian people and businesses, and note ways we can further our bilateral economic relationship, including through the Indo-Pacific Economic Framework and stronger supply chains through friend-shoring,” the release added.

She will reaffirm America’s and India’s shared democratic values and commitment to upholding a rules-based international order as the world’s largest democracies.

The Secretary will also welcome India’s assumption of the G20 presidency next month and discuss opportunities to make progress on global challenges through global climate action, evolving the multilateral development banks (MDBs), further strengthening global health architecture, and advancing debt relief for low-income countries and emerging markets, the department said.

ALSO READ-Nirmala to meet Yellen, World Bank chief

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Nirmala to meet Yellen, World Bank chief

The Finance Minister will be in the western country between October 11 and 16…reports Asian Lite News

Finance Minister Nirmala Sitharaman will be visiting the US on an official visit beginning October 11, to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank, and also the meeting of the G20 Finance Ministers and Central Bank Governors (FMCBG).

In a high-level meeting, the Finance Minister will meet the US Treasury Secretary Janet Yellen and David Malpass, President, World Bank separately to discuss issues of mutual interest.

The Finance Minister will be in the western country between October 11 and 16.

Sitharaman will participate in bilateral meetings with several countries, including Japan, South Korea, Saudi Arabia, Australia, Bhutan, New Zealand, Egypt, Germany, Mauritius, UAE, Iran and Netherlands. One-on-one meetings with leaders and heads of the OECD, European Commission and UNDP are also scheduled.

Besides, interacting with business leaders and investors, she will also attend the meetings of the G20 Finance Ministers and Central Bank Governors.

“Union Minister for Finance and Corporate Affairs Nirmala Sitharaman will be travelling to the USA on an official visit beginning October 11, 2022. During her visit, Sitharaman will be attending the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, the G20 Finance Ministers and Central Bank Governor (FMCBG) Meetings,” read a statement by the Ministry of Finance.

Union Minister will also take part in “India’s Economic Prospects and Role in the World Economy” at the Brookings Institution, a prominent non-profit public policy organisation based in Washington, DC. She will also talk on India’s unique Digital Public Goods (DPG) story and multiplier effects created in India through the interlinkages of ‘Technology, Finance and Governance at the School of Advanced International Studies (SAIS), John Hopkins University during the visit.

During the latter part of the visit, Sitharaman will attend roundtable meetings with USIBC and USISPF on themes to ‘Strengthen Investment and Innovation in India-US Corridor’ and “Investing in India’s Digital Revolution”.

“These meetings with leading business leaders and investors are aimed at highlighting India’s policy priorities, and deliberate on measures to facilitate foreign investment by showcasing India’s attractiveness as an investment destination,” the Ministry said.

ALSO READ-Nirmala presses ahead with privatisation plans

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‘Climate change is an existential risk’

“The Biden administration adapted a whole-of-government approach to aggressively tackle climate change, said US Treasury Secretary Janet Yellen…reports Asian Lite News

US Treasury Secretary Janet Yellen said that her Department will take a “whole-of-economy” approach to tackle the “existential risk” of climate change.

“The Biden administration is taking a whole-of-government approach to aggressively tackle climate change. My goal, at Treasury, is to support this work with a whole-of-economy approach,” Yellen said in remarks to the Institute of International Finance on Wednesday.

“Specifically, we are committed to directing public investment to areas that can facilitate our transition to net-zero and strengthen the functioning of our financial system so that workers, investors, and businesses can seize the opportunity that tackling climate change presents,” she said.

President Joe Biden at Pentagon.(photoInstagram)

Noting that climate change is an “existential risk” to the future economy and way of life, Yellen said that massive investments are needed over the next 10 years to facilitate the transition to net-zero carbon emissions.

“One estimate placed the needed incremental investments at over $2.5 trillion for the US alone. Private capital will need to fill most of that gap,” she said.

“We also recognise the financial sector has an opportunity to play an important role in financing and leading the transition of the global economy to a net-zero economy,” added the Treasury Secretary.

Yellen’s remarks came after the Treasury Department announced on Monday that it was creating a new “Climate Hub” in the department to help coordinate economic policies that address climate change.

“With a view of all Treasury climate initiatives, the Hub will enable Treasury to move nimbly and efficiently in prioritizing climate action,” the Department said.

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Yellen slams Trump on climate responses

“We are seeking to increase the scale of climate finance and use these tools to leverage additional private investment,” said Yellen…reports Asian Lite News

The US is seeking to increase the scale of climate finance and working with the international community to tackle climate change, US Treasury Secretary Janet Yellen said on Tuesday.

“Climate, by its very nature, requires strong global cooperation. We lost four important years, and we recognize that many of you around the room have been leading change in your own countries,” Yellen said at her first meeting with the Coalition of Finance Ministers for Climate Action, adding that the US was pleased to join the coalition last week, the Xinhua news agency reported.

“Finance ministries have a vital role to play, and there is much that we can learn from each other about how to integrate climate into our financial planning and decision-making,” she said.

Yellen said that the US Treasury is working through the US Financial Stability Oversight Council and participating in international forums to understand and mitigate the risks that climate change poses to the stability of the financial system and macroeconomy in the US and across jurisdictions.

Former US President Donald Trump(IANS)

“We are also supporting international efforts to better identify climate-aligned investments and encourage financial institutions to credibly align their portfolios and strategies with the objectives of the Paris Agreement,” she said.

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Meanwhile, the US Treasury is working with the White House, Congress and others to ensure that domestic economic programs and tax policies support US climate goals, including building climate-resilient infrastructure and facilitating a transition to a decarbonised economy, according to Yellen.

“We are seeking to increase the scale of climate finance and use these tools to leverage additional private investment,” she said.

Yellen also said that she is pleased to co-chair the Group of 20’s newly re-established sustainable finance group, which provides an important venue to tackle these issues and promote finance that supports international climate and other sustainability goals.

“Financial market participants that do not put in place frameworks to assess and address climate-related risks could face significant losses on climate-sensitive assets caused by environmental shifts, by a disorderly transition, or both,” Fed governor Lael Brainard said last month.

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Yellen urges minimum corporate tax

“We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom,” said Yellen..reports Asian Lite News

US Treasury Secretary Janet Yellen on Monday called for a global minimum tax rate on corporations that would provide a more level playing field for all countries.

“We are working with G20 nations to agree to a global minimum corporate tax rate that can stop the race to the bottom,” Yellen said in prepared remarks for a virtual event hosted by the Chicago Council on Global Affairs, the Xinhua news agency reported.

“Together we can use a global minimum tax to make sure the global economy thrives based on a more level playing field in the taxation of multinational corporations, and spurs innovation, growth, and prosperity,” she said.

Yellen’s remarks came after US President Joe Biden last week proposed a series of corporate tax changes that could raise roughly $2 trillion over 15 years to pay for infrastructure investments in 8 years.

US President Joe Biden

The Biden proposal would increase the US corporate income tax rate to 28 per cent, up from the current 21 per cent, attempting to partially reverse the tax cuts under the Donald Trump administration.

It would also raise the global minimum tax on US multinational corporations from 10.5 per cent to 21 per cent, in a bid to discourage offshoring and create incentives for investment in the US.

Yellen said that the Biden administration wants to end a “thirty-year race to the bottom” on corporate tax rates around the world.

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“It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government,” she said.

Yellen also emphasized that global cooperation is needed to address global challenges such as the Covid-19 pandemic, technological change and climate change, as “no one country will be successful if it goes at it in isolation”.

“Over the last four years, we have seen firsthand what happens when America steps back from the global stage. America first must never mean America alone,” she said.

Yellen’s remarks also came as global financial and central bank officials begin to gather online this week for the spring meetings of the International Monetary Fund and the World Bank.

Yellen said that she would use the spring meetings to advance discussions on climate change, strengthen tools to improve vaccine access and financing for the world’s poorest countries, increase the focus on inequality and support a strong global economic recovery.

Also read:Biden’s boost for infra, jobs

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‘Biden admin mulls corporate tax hike’

The treasury secretary noted that the 1.9-trillion-dollar Covid-19 relief package recently rolled out has been deficit-funded…reports Asian Lite News

US President Joe Biden is considering an increase in the corporate income tax rate, as one of the tax proposals to offset the cost of the upcoming long-term investment plans, Treasury Secretary Janet Yellen said.

“I think a package that consists of investment in people, investments in infrastructure, will help to create the jobs in the American economy and changes to the tax structure will help to pay for those programs,” Yellen said at a hearing before the House Financial Services Committee on Tuesday, Xinhua news agency reported.

The treasury secretary noted that the 1.9-trillion-dollar Covid-19 relief package recently rolled out has been deficit-funded. “The stimulus package, the American Rescue Plan was not funded with any increase in taxes,” she said, adding that a longer-term plan probably would be accompanied with some revenue increases.

The current crisis is due to the pandemic, Yellen said. “But, once the economy is strong again, we are beyond the pandemic, President Biden is likely to propose that we engage in long-term plans to address long-standing investment shortfalls in our economy.”

She noted that investments in infrastructure, climate change, people, research and development, as well as manufacturing will make US economy more productive.

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“This will be spending over a 10-year horizon and would require some additional funding,” she told lawmakers.

One of the tax proposals Biden would consider is to increase corporate income tax rate back to 28 per cent, Yellen said, noting that the current US corporate income tax is among the lowest in developed countries.

US President Joe Biden

An increase in corporate income tax, if enacted, would mark a reversal of policy from the Donald Trump administration. In late 2017, the Republican-controlled Congress passed a President Trump-advocated tax reform bill, which slashed the corporate income tax from 35 per cent to 21 per cent.

At the congressional hearing, some Republican lawmakers, including Representative Ann Wagner from Missouri, cautioned against raising taxes.

“We know that raising the corporate tax rates results in higher costs for small businesses, schools and American households,” Wagner said.

“Why is this country beginning to reopen and recover economically with the Biden administration preparing tax policy which would in the end hurt the American family and millions of struggling small businesses?” she continued.

Yellen, however, told lawmakers that the impact of the changes in corporate taxes have been studied for a long time, and the impact on prices and on consumers are “very unclear” from existing studies.

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