Yellen says economic slowdown in China would have “global consequences”

Evergrande’s collapse could slam Chinese banks

The Biden administration is closely watching the situation unfolding in China with the world’s most indebted property developer, according to Treasury Secretary Janet Yellen, who warned that its struggles to pay back billions in loans could have repercussions for the global economy.

Evergrande, China’s second largest property developer, is on the hook for more than $300 billion to creditors.

“Real estate is an important sector of the Chinese economy. It accounts for about 30% of demand,” Yellen told “Face the Nation” moderator Margaret Brennan in an exclusive interview. “And a slowdown in China, of course, would have global consequences. China’s economy is large, and if China’s economy were to slow down more than expected, it certainly could have consequences for many countries that are linked to China through trade.”

https://www.cbsnews.com/

US: The cost of living rises 6.2% – its highest level in 31 years

Biden says reversing rampant inflation is a ‘top priority’

President Joe Biden has vowed to make reversing the country’s rising inflation a ‘top priority,’ after the Consumer Price Index revealed inflation is at its highest level in 31 years.

The president has blamed the 6.2 percent increase in the cost of living on ‘market manipulation’ and ‘price gouging,’ despite the nation’s top economists pointing to the country’s supply-chain shortages and businesses struggling to meet the demand from COVID shutdowns as the reason for the rise in prices.

Biden said in a statement on Wednesday his $1.2 trillion Build Back Better plan will help slow the growing inflation problem and Treasury Secretary Janet Yellen has vowed inflation will not reach the exorbitant levels they were at during the Carter years, even as household debt increases to a record high.

https://www.dailymail.co.uk/

Yellen Warns Debt Ceiling Failure Would Be ‘Catastrophic’

Extraordinary measures to keep paying the government’s bills

Treasury Secretary Janet Yellen told lawmakers Wednesday that they must raise or suspend the limit on total U.S. debt before August 1, or risk incurring “absolutely catastrophic economic consequences.”

A two-year agreement that has suspended the debt ceiling expires after July 31, at which point the Treasury would take what it calls extraordinary measures to keep paying the government’s bills. In the past, the Treasury’s extraordinary measures have provided a cushion of several months, but massive spending on Covid relief programs has muddied the financial picture. Speaking to a Senate subcommittee, Yellen said the government could run out of money at some point in August, possibly when Congress is out of town on its summer recess.

https://www.thefiscaltimes.com/

G7 Targets Tech Corporations With International Minimal Company Tax

Minimum global corporate tax of at least 15%

Tthe Group of Seven (G7) agreed on Saturday to support a minimum global corporate tax of at least 15% to deter multinational corporations from avoiding taxes by investing profits in low-interest countries. The G-7 finance ministers’ meeting in London also supported proposals to get the world’s largest corporations – including US tech giants – to pay taxes in countries where they have high sales but no physical headquarters.

UK CFO Rishi Sunak, the host, said the deal would “reform the global tax system to make it fit for the global digital age, and most importantly, to ensure that it is fair to allow the right companies to pay the right taxes to the right.” Digits pay “. . “ US Treasury Secretary Janet Yellen said the deal “provides a tremendous boost” to the achievement of a global deal that would “end the race to the bottom in corporate taxation and ensure fairness for the middle class and working population in the US and around the world “. . “

https://taxnewsdaily.com/

Treasury Secretary Janet Yellen says a ‘shocking’ $7 trillion in taxes are going uncollected

“We’re trying to make meaningful steps to close that gap.”

Treasury Secretary Janet Yellen said a “shocking” amount of taxes are going uncollected by the federal government, and urged additional action to fetch this money from the wealthiest Americans.

“It’s really shocking and distressing to see estimates suggesting that the gap between what we’re collecting in taxes on current tax and what we should be collecting – if everybody were paying for taxes that are due – that amounts to over $7 trillion over a decade,” Yellen said in an interview with The Atlantic published on Tuesday.

She went on: “We’re trying to make meaningful steps to close that gap.”

Yellen’s remarks underscore the Biden administration’s efforts to collect tax revenue from the wealthiest Americans and multinational companies to finance $4 trillion in spending programs to overhaul the economy. President Joe Biden is also increasingly starting to say he does not want his plans to swell the federal deficit.

https://www.businessinsider.fr/

Yellen insists U.S. will see ‘big returns’ by passing Biden spending proposals

 Productivity to rise

 Treasury Secretary Janet Yellen promoted the Biden administration’s proposals for trillions of dollars of new spending on Sunday, arguing that “there will be a big return” for the nation if Congress approves President Joe Biden’s plans on infrastructure, education and jobs.

“The plans are extremely important and necessary to invest in our economy so that we can be competitive and have families and children succeed, invest in infrastructure, in R&D, and things that shore up middle-class prosperity — education, childcare, and health care,” Yellen said in an interview on “Meet the Press.”

https://www.nbcnews.com/

Yellen Says U.S. Inflation Risk Remains Small, Manageable

Yellen said that the US could see full employment next year

Treasury Secretary Janet Yellen said U.S. inflation risks remain subdued as the Biden administration pumps $1.9 trillion in pandemic relief into the economy and a return to full employment comes into view. “Is there a risk of inflation? I think there’s a small risk and I think it’s manageable,” Yellen said on ABC’s “This Week” on Sunday. Some prices that fell last year when the Covid-19 pandemic spread through the U.S. will recover, “but that’s a temporary movement in prices,” she said.

“I don’t think it’s a significant risk,” said Yellen, a former Federal Reserve chair. “And if it materializes, we’ll certainly monitor for it but we have tools to address it.”

Biden on Thursday signed into law the pandemic relief package, which provides funding for vaccinations and delivering aid to households, businesses and state and local governments. Yellen and other officials insist the aid – which comes on top of pandemic relief passed by Congress last year — is badly needed for an economy slammed by Covid-19, particularly low-income workers heavily represented in service industries, despite signs of recovery.

https://www.bnnbloomberg.ca/