FAST FIVE: Yellen Says US Will Fight Currency Manipulation, Will Use "Full Array Of Tools" To Counter "China's Abusive Economic Practices"

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Yellen, in the written responses, promised to “work with members of Congress” to address this question.

Yellen dodged the question whether a repeal of the cap on state and local tax deductions, as proposed by Biden, would deliver a big tax cut to wealthy Americans while doing next to nothing for those in the bottom half of income distribution.

But, as Bloomberg notes, she was more direct in responding to criticism of Biden's plan to reduce the threshold for the federal estate tax, saying “about the wealthiest six out of every thousand estates would face any tax” under the plan.

As part of his review, the President will consult with allies to galvanize collective pressure on China and support American workers and businesses.” Yellen also addressed whether the US should keep Trump's Section 301 tariffs on China: President Biden has said that we will review the tariffs on China and consult with our allies and will not be making changes until we do both of these things.

Yellen also pointed out that whereas the US approach to date has focused on a unilateral approach – and, as a result, “could have been more effective”, going forward, “we should strive to meet this important challenge by building a united front of US allies and partners, including through multilateral institutions, to confront China's abusive behaviors.” Tied to that, Yellen said she would commit to having OFAC personnel discuss the current sanctions on North Korea and China, “including whether the current sanctions are effective and whether such sanctions should be strengthened and, if so, how to do so.” Other topics discussed include: Tax Policy: Yellen promised to “work with members of Congress” on whether households earning less than $400,000 a year will be protected from any reversal of President Donald Trump's 2017 tax cuts — something Biden pledged on the campaign trail She also dodged the question of whether a repeal of the cap on state and local tax deductions, as proposed by Biden, would deliver a big tax cut to wealthy Americans while doing next to nothing for those in the bottom half of income distribution She was more direct in responding to criticism of Biden's plan to reduce the threshold for the federal estate tax, saying “about the wealthiest six out of every thousand estates would face any tax” under the plan Treasury-Fed coordination: Yellen suggested that she won't mount a fresh fight to revive several Federal Reserve lending facilities that were phased out by her predecessor.

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