ratification of the 15% global corporate minimum tax agreed by 137 countries, but other nations are implementing it. Republicans in Congress, along with Democratic Senator Joe Manchin, have blocked U.S. Treasury official who is a senior fellow at the Center for Strategic and International Studies in Washington. Real risks that are not manufactured for political posturing," said Stephanie Segal, a former U.S. G7 counterparts will question Yellen "about the financial stability risks in the U.S., the regional banks' exposure to commercial real estate. banking woes are likely to overshadow urgent discussions about a looming sovereign debt crisis and could eclipse Japan's focus on reducing supply chain dependencies on China, experts said. debt "shall not be questioned" to override Congress - an option that Yellen has said is far from ideal. He said he thinks Yellen would likely discuss potential contingency plans, including invoking the 14th Amendment, which says the validity of U.S. It will lead to a freeze in global financial markets," said Muehleisen, now a fellow with the Atlantic Council. "All hell will break loose on the day they stop paying their bills. Martin Muehleisen, a former International Monetary Fund senior official, said he believes Yellen will be careful in private meetings with G7 counterparts not to suggest that a default is likely or even possible, given the panic that might cause. lawmakers that failure to raise the $31.4 trillion borrowing cap would be a "catastrophe" for global financial markets and the economy. business executives and appear on several major television shows to warn U.S. Yellen delayed her trip to Japan to personally call U.S. regional lenders won't spin out of control after a third major bank failure. Making matters worse, she also will need to reassure G7 finance ministers and central bank governors that pressures on U.S. bond market is the foundation for the global financial system, with the dollar as the reserve currency and Treasury debt long regarded as the world's safest and most liquid financial asset - a status Yellen said would be eroded in a default. She will warn about "the global impact of this standoff and highlight the need to avoid default," a senior Treasury official said. debt default, which the Treasury said could come as soon as June 1. Yellen, who did not attend the meeting, will use a news conference in Japan on Thursday to speak about the risks of a U.S. deficit under control, and Biden "has got to stop ignoring problems." Republican House of Representatives Speaker Kevin McCarthy argued ahead of a high-stakes meeting on Tuesday with President Joe Biden that some spending concessions on the debt limit were necessary to bring a spiraling U.S. now on economic matters is as about as tough as I've seen it because there is such intransigence, particularly on the Republican side," added Broadman, managing director at Berkeley Research Group. participation in the 15% global minimum corporate tax, for which she won support in 2021. Republicans' control of the House of Representatives since January has made it more difficult for Yellen to deliver on promises Democrats made in multilateral negotiations, such as U.S. trade official, adding that it distracts from other initiatives. as an economy globally," said Harry Broadman, a former White House, World Bank and U.S. Having to deal with the debt ceiling puts egg on the face of the U.S. "Yellen has got a tough brief for the G7. partisan divides can reverberate around the globe and stall the Biden administration's multilateral economic goals. The shift illustrates how profoundly U.S. is not going to tank the global economy with a payments default. She's likely to spend much of the two-day meeting in Niigata reassuring the same group that the U.S. Yellen spent last year spearheading punishing G7-led sanctions imposed on Russia over its invasion of Ukraine. debt ceiling that threatens a new financial crisis, and a signature tax deal blocked by Republicans. NIIGATA, Japan/WASHINGTON, May 10 (Reuters) - Treasury Secretary Janet Yellen lands at Japan's G7 finance meeting this week, with her ambitious economic agenda hijacked by a bitter partisan fight over the U.S.
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