Tag: Economic

Sri Lanka’s only solution to economic crisis is turning to IMF, says Wickremesinghe

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Colombo: Sri Lankan President Ranil Wickremesinghe on Tuesday emphasised that seeking the IMF bailout package was the only option available to the debt-ridden country to overcome the ongoing economic crisis.
“When a country goes bankrupt, it has to go to the International Monetary Fund. Apart from that, there is no other organisation in the world that provides aid when a country goes bankrupt,” Wickremesinghe said.
Addressing a gathering in the central town of Kandy, he said that each nation that experienced an economic catastrophe recovered after engaging in talks with the IMF and cited the example of Greece which took 13 years to recover from the collapsed economy.
“I have no hope of being President for 13 years,” Wickremesinghe said, amidst opposition to his hard economic reforms which had triggered utility rate hikes and increased personal taxes.
“There is only one way to rebuild this collapsed economy. That is the International Monetary Fund. Different political parties are presenting different stories. I suggested to them to let me know if there is another way to resurrect the collapsed economy.
“The IMF indicates that our tax revenue should be 15 per cent of the GDP as it was in 2019. So far it has gone down to 09 per cent,” he added.
He said the IMF had assigned Sri Lanka 15 tasks to complete.
“The IMF gave us until December 31 to implement it. But we couldn’t do it on that particular day. Then we made plans to get time until January 31. Even at that time, we were unable to complete those 15 points. Finally, the deadline was pushed back to February 15… All 15 tasks assigned to us have been completed. Now it is up to the IMF,” he added.

Wickremesinghe acknowledged that delays over Chinese willingness to restructure Sri Lanka debt had caused problems.
“This is being discussed further. The IMF also suggested that everyone should get on one platform and discuss. However as China is a world power, their procedure is different,” he said.
He said he would meet the Chinese finance minister on February 23 in Bengaluru at the G20 Finance Ministers and Central Bank Governors (FMCBG) meeting this week.
“There, I hope to discuss the debt restructuring method of Sri Lanka with the Chinese Finance Minister,” he added.
Wickremesinghe said if the IMF did not provide assistance, the island nation would have to return to its last year situation of unavailability of fuel and 12-hour power cuts.
Sri Lanka was hit by an unprecedented financial crisis in 2022, the worst since its independence from Britain in 1948, due to a severe paucity of foreign exchange reserves, sparking political turmoil in the country which led to the ouster of the all-powerful Rajapaksa family.
The IMF in September last year approved Sri Lanka a 2.9 billion dollar bailout package over 4 years pending Sri Lanka’s ability to restructure its debt with creditors — both bilateral and sovereign bond holders.
With assurances from creditors, the 2.9 billion dollar facility could get the IMF board approval in March.
The IMF facility would enable the island nation to obtain bridging finance from markets and other lending institutions such as the ADB and the World Bank.
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#Sri #Lankas #solution #economic #crisis #turning #IMF #Wickremesinghe
( With inputs from www.siasat.com )

February 21, 2023
Economic pact with UAE given boost to Indian entrepreneurs: PM Modi

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New Delhi: Prime Minister Narendra Modi on Sunday said that the comprehensive economic partnership agreement (CEPA) with UAE has given a boost to Indian entrepreneurs.
Modi said in a tweet that it has also deepened India’s ties with UAE.
He was responding to a tweet by commerce minister Piyush Goyal, who had said on Saturday that February 18 marked one year of signing of India-UAE CEPA.
Goyal along with UAE’s minister of state for foreign trade Thani Al Zeyoudi had co-authored an article on completion of one year of CEPA.
Goyal even tagged the article with his tweet.
“One year since we signed the #IndiaUAECEPA. In this article jointly written with UAE Minister of State for Foreign Trade @ThaniAlZeyoudi, we highlight how the deal is a turning point in our economic ties & a model for cross-border collaboration,” Goyal had tweeted on Saturday.
Goyal along with UAE’s minister wrote in the article that “by reducing tariff on more than 80 per cent of product lines, enhancing market access to service exports and providing platform for SMEs to collaborate and scale, both the countries have envisioned a new era of opportunity in an uncertain world”.

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#Economic #pact #UAE #boost #Indian #entrepreneurs #Modi
( With inputs from www.siasat.com )

February 19, 2023
Biden faces a key economic decision ahead of reelection

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Powell laid out the “lengthy list” of responsibilities that Brainard has carried at the Fed beyond monetary policy. In a statement, he cited his vice chair’s “stewardship of financial stability and the payments system, strengthening the financial system both domestically and globally, and helping to manage the immense operational agency challenges during the pandemic.”
She earned admirers and detractors along the way from both progressives and Republicans, signaling that Biden’s efforts to replace her could face some formidable obstacles in a closely divided Senate.
Sen. Elizabeth Warren (D-Mass.), who sits on the Banking Committee overseeing the Fed, said she wants someone new at the Fed “soon.” Warren has been sharply critical of Powell’s efforts to kill inflation by cranking up rates at the fastest pace in four decades.
“Chairman Powell continues to signal that he will impose more extreme rate increases, and he still is in a position where he could tip our economy into recession,” Warren told POLITICO. “We need another voice at the Fed to help put the brakes on that.”
Here’s a list of potential candidates who have been the subject of speculation on Biden’s Fed nominee.
Mary Daly
The San Francisco Fed president is a labor economist and a close ally of Powell, who will likely be consulted on the choice. She is a potentially strong candidate to succeed Brainard because she’s viewed as being particularly concerned about avoiding damage to the job market — in central bank-speak, a “dove.” She also has ties to Treasury Secretary Janet Yellen, herself a former San Francisco Fed president, who Daly credits with helping advance her career. Yellen is also likely to weigh in on the nominee.

Former President Barack Obama and former Council of Economic Advisers Chair Austan Goolsbee, left, participate in an online chat session in Cleveland, Feb. 22, 2011.
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Carolyn Kaster/AP Photo
Austan Goolsbee

A chief economist to President Barack Obama, Goolsbee only became head of the Chicago Fed last month. But he’s already being talked about as a potential replacement for Brainard, since he too is perceived as dovish. He has highlighted the role that supply chain snarls have played in inflation and warned that acting too aggressively to rein in elevated prices caused by problems the Fed can’t solve could result in a recession — and still leave us with high inflation.
Susan Collins
The Boston Fed president was closely connected to the central bank even before she took her current job last year, regularly attending the exclusive Jackson Hole conference every August. Collins, the first Black woman to head a regional Fed branch, is an international economist whose work has focused on economic growth in developing countries. She previously served as provost and head of the public policy school at the University of Michigan.
Lisa Cook
Already a member of the Fed’s board, Cook fits the mold of being sympathetic to workers and willing to question the traditional narrative that low unemployment is a problem for inflation. A former economist at Michigan State University, Cook has long explored the impact of racial injustice on the economy. She faced a bruising confirmation battle last year but was ultimately confirmed in a 51-50 vote to become the first Black woman to get a vote on interest rate policy, two months before Collins took her post in Boston.
Betsey Stevenson
Another economist with ties to Michigan, Stevenson previously served as an economic adviser to Obama on issues related to social policy, the job market, and trade — making her a familiar face to Bidenworld. An expert on employment and wages, she also previously served as chief economist to the Labor Department. She’s currently a professor at the University of Michigan.
Karen Dynan
The Harvard economics professor has extensive ties to the Fed, having served on the staff of its board for 17 years. But she’s also got political connections, having served as chief economist at the Treasury Department from 2014 to 2017 and as a senior economist at the White House’s Council of Economic Advisers from 2003 to 2004.

Council of Economic Advisers Chair Christina Romer briefs reporters at the White House in Washington, Feb. 11, 2010.
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Charles Dharapak/AP Photo
Christina Romer
Romer, like Goolsbee, served as chief economist to Obama, giving her deep connections to the current White House. At the time, she worked closely with Jared Bernstein, who’s set to be nominated as Biden’s chief economist, to draft a plan for recovering from the 2008 financial crisis. Currently a professor at the University of California at Berkeley, she has done extensive research on the Fed and monetary policy.
Janice Eberly
Eberly preceded Dynan as chief economist at Treasury under Obama and is a prominent expert in macroeconomics. Now a professor at Northwestern University, she has previously been considered for openings at the Fed.
Brian Sack
Sack is a familiar face for the Fed who has dealt extensively with this administration as vice chair of a private-sector committee that advises Treasury on debt management. As a former head of the New York Fed’s markets group, he was responsible for implementing the central bank’s policy decisions, and he also served for seven years on the staff of the Fed board. He recently left investment management firm D.E. Shaw.
Seth Carpenter
Morgan Stanley’s global chief economist used to be a top monetary policy staffer at the Fed board and subsequently was acting assistant Treasury secretary for financial markets, meaning he has dealt intimately with central bank policy from multiple angles. His name has been floated for a number of jobs in this administration, given his range of experience. It’s unclear whether the administration would be comfortable appointing someone who works at a prominent megabank, though.
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#Biden #faces #key #economic #decision #ahead #reelection
( With inputs from : www.politico.com )

February 16, 2023
Biden faces looming economic threats with staff shake-up

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“Lael and Jared will help bring a seriousness of purpose to the task of building a strong, inclusive, and more resilient economy for the future,” Biden said in a statement Tuesday in announcing the picks.
With the new team, the president is opting for deep Washington experience and knowledge of how to pull the levers inside the executive branch to boost the economy, with a hostile GOP House poised to block major legislation. Biden is also getting an NEC director with broader international experience than her predecessor, Brian Deese, who could help keep trade disputes with China and the European Union from blowing up.
Brainard, Bernstein and new White House chief of staff Jeff Zients, a businessman, will lead a team charged with implementing sweeping laws passed the last two years while playing defense against House Republicans bent on forcing spending cuts in return for raising the debt limit.

Jared Bernstein speaks with reporters at the White House.
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Alex Brandon/AP Photo
“The White House sees moderate Republicans as gettable on certain issues,” said one White House official in explaining the pick. “So they want adults with some gravitas in the room.”
Still, Brainard may have her work cut out for her, with some Republicans seeing her as a big-government Democrat. Rep. Patrick McHenry, the new GOP chair of the powerful House Financial Services Committee, called her selection “misguided.”
“Throughout her career, Dr. Brainard has made her political agenda clear and has attempted to expand executive regulatory authority and control to accomplish it,” he said in a statement.
She served in the Clinton administration, where she was involved in implementing the North American Free Trade Agreement and negotiating China’s entry to the World Trade Organization — both achievements that have since come under fire from many progressives, who have viewed them as threats to American workers.
She also served at Treasury under former President Barack Obama, where she was the department’s top diplomat from 2010 to 2013, dealing with the euro crisis and pressuring China to allow the value of its currency to be more influenced by market forces.

White House officials say Brainard’s international experience — while troubling to many progressives and even some Republicans — will be critical in helping avoid any global disputes that could tip the economy toward recession.
She enters the White House as inflation is coming down, though slowly, and the job market remains hot. But the Fed, where Brainard served as Chair Jerome Powell’s No. 2, is continuing to push up interest rates to battle inflation.
While economists are boosting their odds for a so-called soft landing following the rate hikes, there remains a significant chance that all the tightening could push the economy into recession as Biden launches his expected reelection bid.
Larry Summers, the former Treasury secretary under Clinton who has warned of a coming recession, praised the pick. “She will be a great successor to Brian Deese,” Summers wrote in a text to POLITICO. “She has the macroeconomic and global experience crucial in the complex times that lie ahead, along with the savvy necessary to succeed in today’s Washington.”
Inside the administration, progressives who preferred someone like NEC deputy Bharat Ramamurti, a former top aide to Sen. Elizabeth Warren (D-Mass.), for the job, were only mildly critical of Brainard.
“The left will be concerned about the transformation at the Fed and what that means,” said another White House official, who requested anonymity in speaking about a new colleague. “And she’s just a black box on a lot of domestic policy issues.”
Brainard, 61, is a Harvard-trained Ph.D. economist whose expertise in international matters will be relevant as the administration faces renewed tensions with China over alleged espionage, Russia’s war in Ukraine and a global food crisis brought about by soaring prices around the world and continued supply chain issues. The daughter of a U.S. diplomat, she spent her childhood in West Germany and Poland before the Soviet Union fell.
A prominent player in policymaking circles for decades, Brainard joined the White House for the first time in the late 1990s.
She juggled a demanding career alongside child care — she has three daughters — once telling a story about taking a trip to Japan for a G-7 meeting with an infant in tow.
According to her retelling at a conference in 2020, she would sneak out at breaks to breastfeed her child, who was then less than 3 months old, without letting on that’s what she was doing.
Since her stint in the Clinton administration, she has steadily risen through the strata of economic policy, including serving as undersecretary of the Treasury for international affairs under Obama. She joined the Fed in 2014, where she worked alongside fellow board member Powell. Both of them would eventually be promoted, Powell to chair in 2018 and Brainard to vice chair in 2022.
She speaks in a measured and deliberate manner that can come off as guarded. At both the Treasury Department and the Fed, she has gained a reputation for working her aides particularly hard.
“She has very high standards for herself and her staff,” wrote Claudia Sahm, a former Fed economist who worked under Brainard, in a blog post in 2021. “Everything that I and others worked on with her had a clear purpose. Strategic thinking and a clear vision are how you get the most out of your resources,” she added, dismissing characterizations that Brainard has a “sharp elbow.”
“I think she’s very pragmatic,” Sen. Catherine Cortez Masto (D-Nev.) said in an interview. “She sees both sides of it and is willing to work and bring people together to really solve problems and address the issues that we need to.”
Eleanor Mueller contributed to this report.
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( With inputs from : www.politico.com )

February 15, 2023
Biden taps Fed’s Brainard as top economic adviser

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She will be leaving the Fed at a crucial juncture when it’s deciding how long to keep interest rates at punishingly high levels to kill inflation. If central bank officials press too hard, they could trigger a recession that pushes millions of people out of work.
Still, the job market has remained resilient even as price spikes have cooled, raising the prospect that the Fed — and Biden — might be able to avoid widespread economic pain.
POLITICO previously reported that Brainard and Bernstein were both poised to take these positions. Bloomberg earlier reported Biden’s decision.
At the White House, Brainard will face lingering skepticism from the left over her time working as an adviser in Bill Clinton’s administration, where she was involved in implementing the North American Free Trade Agreement and negotiating China’s entry to the World Trade Organization. Many progressives viewed both moves as detrimental to the interests of American workers.
Brainard, a Ph.D. economist, also served at Treasury under President Barack Obama, where she was the department’s top diplomat from 2010 to 2013, dealing with the euro crisis and working to pressure China to allow the value of its currency to be more influenced by market forces.
She arose as a top contender for Treasury secretary when Hillary Clinton was running for president in 2016 — and faced criticism for donating to Clinton’s campaign. That was an unusual move for an official at the Fed, which is given extensive policy freedom in part because it’s expected to stay above the political fray.
But she then built credibility with progressive Democrats by dissenting more than 20 times on moves by President Donald Trump’s appointees at the central bank. These included proposed rollbacks of regulations placed on big banks after the 2008 financial crisis.
She also earned support from Fed Chair Jerome Powell for her resistance to efforts by another bank regulator to ease rules designed to combat discrimination against poor and minority borrowers, a historic practice known as redlining.

Brainard has charted her own vision for reform of that law, the Community Reinvestment Act, that fellow Democrats are hopeful will be more responsive to the needs of lower-income communities. That regulation has not yet been finalized and is now facing legal threats from banks.
She chairs four of the Fed’s internal committees, leading policy in key areas like whether the Fed should issue a central bank digital currency. It’s unclear who will take up those portfolios after she departs.
She is married to Kurt Campbell, who served in the State Department under Obama and now is a top adviser to Biden on Asia.
Bernstein, currently a member of the Council of Economic Advisers, will likely be nominated as its head, a Senate-confirmed position, unlike NEC director. He would replace Cecilia Rouse at the helm of the White House’s in-house economic research office. Rouse is returning to Princeton.
Deese, 45, is leaving the NEC — which is housed inside the West Wing and is the more powerful of the two offices — to be closer to his family.
He joined the White House from Wall Street investment giant BlackRock, which created some blowback from progressives wary of anyone with a history in the banking industry.
Deese joined BlackRock as Global Head of Sustainable Investing after serving in senior roles in the Obama White House. During his time in the Biden administration, he played major roles in the president’s economic plans including the CHIPS Act and the Inflation Reduction Act.
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#Biden #taps #Feds #Brainard #top #economic #adviser
( With inputs from : www.politico.com )

February 14, 2023
Economic and social progress should be just and inclusive: President Murmu

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Lucknow: President Droupadi Murmu on Sunday stressed that economic and social progress should be just and inclusive and said the national priority is to bring all deprived sections of society and women within the ambit of development.
Addressing a civic reception hosted in her honour by the Uttar Pradesh government at Lok Bhavan here, she said the warm welcome she received has made her first visit to Lucknow as president unforgettable.
She said the Uttar Pradesh government is determined to achieve big goals.
“I am confident that Uttar Pradesh would contribute significantly in ensuring economic, social and political justice through women empowerment. In the history of political empowerment of women, Uttar Pradesh has unique records,” she said.
“Along with the growth of the economy, it is necessary for economic and social progress to be just and inclusive. It is our national priority to bring all deprived sections of society and women within the ambit of inclusive development,” she said.
She expressed confidence that India has a bright future as the hardworking and dedicated people of such a vast state are working to build a new India.
“The country’s largest work-force and largest youth population are being provided opportunities to utilise their talents in the state,” she said.
The president said Lucknow, situated on the bank of the Gomati river, is associated with our oldest traditions and has been a major centre of culture, literature, politics and art and skills in the medieval and modern times.

“The traditions and sentiments emanating from Kashi, Ayodhya, Mathura and Sarnath unite all Indians in one thread. Naimisharanya, Gorakhpur, Magahar and many other holy places of Uttar Pradesh have witnessed India’s flourishing spiritual power,” she said.
“The spiritual energy of such holy places would continue to provide strength to our country for ages,” she added.
The Kumbh in Prayagraj has been a major religious, spiritual and cultural event since ancient times, she said, adding that in 2017 UNESCO recognised Prayagraj Kumbh Mela as an “Intangible Cultural Heritage of Humanity”.
Governor Anandiben Patel, Chief Minister Yogi Adityanath and people from diverse fields were present on the occasion.
Earlier in the day, the president addressed the valedictory session of the Uttar Pradesh Global Investors Summit here.
At the summit, President Murmu said Uttar Pradesh is “capable and ready” to become India’s growth engine.
She said that through the summit the state got investment proposals worth Rs 35.5 lakh crore.
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#Economic #social #progress #inclusive #President #Murmu
( With inputs from www.siasat.com )

February 12, 2023
Hyderabad: International seminar on ‘Global Economic Situation’ begins

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Hyderabad: The Indian Air Force’s air commodore P Maheshwar along with Malla Reddy University vice-chancellor Dr V.S.K. Reddy inaugurated a two-day international seminar on the ‘global economic situation’ with reference to market trends in India.
Kicked off on Friday at Malla Reddy University, the seminar will conclude on February 11.
Air commodore Maheshwar who mainly focused on ‘Atmanirbhar Bharat’ as the source of utility for the people, spoke on the role of MSMEs in bringing up more technological start-ups.
He further guided students about how to be a part of the Indian Air Force and pulled light on new economic drivers that play a major role in the country’s development.
Vice-chancellor Dr Reddy highlighted the importance of the New Education Policy and the importance of getting up-skilled for career development.
He also spoke about how technology was becoming the base for global economic trends while mentioning that management students are the beacons of the upcoming marketing trends.
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( With inputs from www.siasat.com )

February 11, 2023
Karan Adani, Anant Ambani among members of Maha economic advisory panel

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Mumbai: Tata Sons chairman N Chandrasekharan will head the Maharashtra state Economic Advisory Council (EAC) which also includes Karan Adani and Anant Ambani, a government resolution said on Monday.
Karan Adani, the CEO of Adani Ports and SEZ Ltd, is the son of Gautam Adani, who is battling allegations of stock manipulation and fraud in Adani Group raised by Hindenburg Research. The Adani Group has denied the allegations, which created a political firestorm and eroded his networth.
The Adani junior has been named as the expert on the ports and SEZ sector in the 21-member body.
“An Economic Advisory Council as an Independent Body to advise the state government on economic and other related issues ,” the government resolution said.
The council has domain experts from fields including textiles, pharma, ports, special economic zone, banking, agriculture, industries, engineering, and manufacturing.
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( With inputs from www.siasat.com )

February 6, 2023
Centre’s policy root cause of Kerala’s economic crisis: FM Balagopal

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Thiruvananthapuram: Kerala Finance Minister K N Balagopal, during the budget presented by him in the State Assembly here on Friday, attacked the BJP-led Centre by alleging that its policy was the root cause of the economic crisis in the southern state.
In his budget speech, Balagopal claimed that the centralisation of power and disregard for states, especially Kerala, has increased in an unprecedented manner.
Launching a scathing attack on the Centre, Balagopal, also a prominent leader of the state’s ruling CPI(M), said that change in fiscal federalism that goes against the spirit of the Constitution was a more serious threat than any other issue.
“During the tenure of the 10th Finance Commission, the share of Kerala was 3.875 per cent of the divisible pool to be distributed among the states. By the time of the 15th Finance Commission, it came down to 1.925 per cent. Through this, the Union government cut down the revenue of Kerala by tens of thousands of crores,” he charged.
The minister said there is a shortfall of around Rs 6,700 crore due to the reduction of the Revenue Deficit Grant by the Union government.
“As a result of the cessation of GST compensation, there has been a shortfall of around Rs 7,000 crore during the current fiscal. As a result of the policy of the Union government treating Public Accounts as debt liability, there is a revenue loss of around Rs 10,000 crore per annum,” Balagopal said.
He said the policy of treating the liability of institutions like Kerala Infrastructure Investment Fund Board (KIIFB), Social Security Pension Limited, etc., which raise funds from outside the budgetary allocation as that of the state, is also limiting the government’s borrowing capacity.
“There will also be a shortfall of Rs 3,100 crore on this account. Due to the restriction on the market borrowing limit, there has been a shortfall of around Rs 4,000 crore in the resource mobilisation,” the minister said.
He said it is anticipated that the fiscal constraints in 2023-2024 will be more than that of the current year. “This is because of the anticipated shortage of Rs 8,400 crore in Revenue Deficit Grant compared to 2022-23, the loss of around Rs 5,700 crore due to the cessation of GST compensation, the resource loss of around Rs 5,000 crore due to the restriction on the borrowing limit as well as the reduction on account of the debt likely to be borne by KIIFB and the Social Security Pension company during next year,” Balagopal said.

As the state recovers from the economic crisis and is on the path of growth, the fiscal policy of the Union government will adversely affect growth prospects, he added.
Stating that Kerala is countering serious constraints, he said in the current scenario, the state cannot surpass the strict and rigid norms stipulated by the Centre.
“The taxation powers of the state are limited. The borrowing powers are also strictly restricted. We have to understand the situation and move forward irrespective of party politics,” he said.
Balagopal said the state government was not of the opinion that loans should be given to debt-ridden corporates from the hard-earned money of common people by investing it in various financial institutions.
“Our opinion is that the Central and the State governments shall carry out more developmental, welfare activities by availing more loans. But the Union government is reluctant to relax the conservative stance,” he said.
Balagopal said the Left government considers the conservative financial policy enforced by the Union government as the biggest challenge to the alternative development model of Kerala.
“But we are not ready to abandon our alternative model or its virtues in spite of the hurdles posed by the Union government. Kerala has not reached here without facing any crisis,” he said.
A significant change towards the financial developmental planning approach is required to survive this new situation that has arisen due to the curtailing of the fiscal space, he added.
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( With inputs from www.siasat.com )

February 3, 2023
Biden to remake economic team with Brainard, Bernstein poised for top roles

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But it remains highly uncertain whether the Fed can navigate a so-called soft-landing for the economy, in which growth slows but the country averts a recession. And other big headaches loom, including a GOP-controlled House potentially forcing a market-shaking showdown over raising the government’s debt limit.
Multiple senior Biden aides and others close to the process described the selection of Brainard and Bernstein, who is currently a member of the Council of Economic Advisers, as close to assured, but no formal announcement is set yet. It’s still possible that either job could wind up slipping to one of several other candidates or that new names could emerge, they said.
Brainard, who is meeting with other Fed officials this week in Washington to decide on the central bank’s next interest rate hike, could not be reached for comment.
“It’s not totally done yet,” one top White House official said, while not disputing that Brainard and Bernstein are the leading candidates. Another senior official agreed, while a third said the two appointments seemed definite but that Biden had not given a final sign-off.
White House Deputy Press Secretary Emilie Simons said in a statement, “There is no decision on either of these positions and any reporting to the contrary is inaccurate.”
The White House officials said installing Brainard at NEC to succeed Brian Deese would offer gender diversity to the economic leadership, It would also make it easier for Biden to pick his friend Bernstein, who is among a group of older, white male advisers, to head the CEA, the White House’s in-house economic research office. Current CEA Chair Cecilia Rouse is returning to Princeton. Deese is leaving the NEC — which is housed inside the West Wing and is the more powerful of the two offices — to be closer to his family,
A Brainard and Bernstein combination would at least partially satisfy left-leaning Democrats who pushed for a younger and more aggressive candidate for the NEC job such as Bharat Ramamurti, the current NEC deputy and a former top staffer for Sen. Elizabeth Warren (D-Mass.).
Progressives had questioned Brainard’s commitment on some of their key issues since she served as President Barack Obama’s Treasury undersecretary for international affairs under then-Secretary Timothy Geithner. At the time, Brainard was viewed by many progressives as insufficiently aggressive on using executive tools to fight climate change and economic inequality and as too pro-free trade and friendly with elite global bankers.

But Brainard has nudged left on some of those issues and been a progressive at the Fed on monetary policy — mostly preferring a gentler path of rate hikes to fight high inflation.
Bernstein is widely admired in progressive circles while also holding credibility with more centrist-leaning Democrats and even some Capitol Hill Republicans. He has long been a vocal critic of trade agreements so could limit any fallout among organized labor groups over the Brainard pick.
The selection of Brainard and Bernstein would come after weeks of feverish jockeying, often through strategic press leaks, for the top economic jobs, with a variety of names being floated as front-runners by Democratic insiders eager to see their preferred candidates get the jobs.
The White House has also flirted with various Wall Street veterans for top positions, including investment bankers Blair Effron and Antonio Weiss. Putting any such candidate into a policy-influencing spot would likely have enraged progressives, and the idea appears to have been mostly dropped.
Other candidates mentioned as candidates for NEC have included Deputy Treasury Secretary Wally Adeyemo, American University President and former Obama cabinet member Sylvia Mathews Burwell, Commerce Secretary Gina Raimondo and senior Biden economic adviser Gene Sperling.
Friends say that Sperling, who served as NEC director under both Presidents Bill Clinton and Obama, coveted doing the job for what would be a record third time. Sperling, who splits his time between Washington and Los Angeles, has repeatedly denied wanting or campaigning for the job.
Zients is viewed as a masterful manager and problem solver but less well-versed or interested in the kind of backroom political horse-trading required to push things like a debt limit deal through on Capitol Hill. Brainard has extensive Hill relationships as does Bernstein.
Bernstein and Brainard are both considered centrist enough to offer some comfort to Wall Street investors and not averse to cutting deals with Republicans if that’s what it takes.
Brainard’s departure from the Fed would leave a significant hole at the central bank, where she is a trusted No. 2 to Chair Jerome Powell.
Brainard, a Ph.D. economist, also chairs four of the central bank’s internal committees, leading policy in key areas like whether the Fed should issue a central bank digital currency.
Victoria Guida contributed to this report.
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( With inputs from : www.politico.com )

February 1, 2023