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The Irish and Estonian governments on Thursday agreed to sign on to a 15% global minimum tax rate on multinational firms, leaving only Hungary as the last hold-out against the far-reaching deal. 

The reform aims to stop international corporations from slashing the tax bills by registering in nations with low rates. 

“The government has now approved my recommendation that Ireland joins the international consensus,” Irish Finance Minister Paschal Donohoe said. 

“I’m absolutely satisfied that our interests are better served within the agreement,” he added. 

Estonian Prime Minister Kaja Kallas said that joining the reform would ensure “we have the best chance of ensuring that Estonia’s business environment and tax policy continue to work in the interests of a better future for all of us.” 

Finance ministers from wealthy G-7 nations in June endorsed a global minimum corporate tax rate of at least 15%, reached in the framework of the Organization for Economic Co-operation and Development (OECD). 

It was approved by the G-20 in July and has been signed by more than 130 countries, except Hungary. 

Hungarian Foreign Minister Peter Szijjarto said earlier this week that there was a chance that his country could agree to it as long as the reform “does not damage the Hungarian economy or put Hungarian jobs in danger.” 

Donohoe said Ireland has insisted on a change of wording, excluding “at least” before the 15% figure, describing this as an important issue that needed to be resolved, due to the “desire of some to seek a higher rate.” 

The minister said the reform was expected to take effect in 2023. 

Ireland currently has a 12.5% tax rate. 

Its tax policy has attracted giants such as Apple and Google, while Estonia had been concerned that joining the reform could threaten its vibrant tech start-up sector. 

The reform will affect 56 Irish multinationals that employ about 100,000 workers, as well as 1,500 foreign-owned multinationals employing 400,000 people. 

It only applies to companies with annual turnover of more than 750 million euros ($870 million) a year. Smaller businesses will still pay corporate tax at 12.5%. 

Kallas said that in the case of Estonia the reform “will not change anything for most Estonian business operators, and it will only concern subsidiaries of large multinational groups.” 

While Ireland stands to lose 800 million to 2 billion euros in corporate tax receipts if companies leave the country, the minister argued that if it did not sign up to the deal, Ireland would “lose influence in respect to the critical decisions that will come in the coming months.” 

He added that there was debate in the U.S. Congress on changes that would align their tax system with the OECD agreement, calling this a key factor due to “significant investment by U.S. multinationals here.” 

Following Ireland and Estonia’s decision, U.S. Treasury Secretary Janet Yellen said, “We are on the way to a generational achievement of creating a global minimum tax, which would create a more level playing field so jobs and investment can flourish in the United States.” 

Ireland’s low levy has attracted an outsized number of pharma and tech firms but also prompted accusations the nation acts as a tax haven. 

 
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After losing two full summers of tourism revenue, Britain is getting rid of restrictive quarantine requirements for visitors from 47 countries, including India, South Africa, Brazil and Turkey.

Starting Monday, vaccinated travelers from those countries will no longer have to quarantine for 10 days in a hotel upon arrival in Britain.

Britain recognizes the AstraZeneca, Pfizer BioNTech, Moderna and Janssen (Johnson & Johnson) vaccines.

Visitors from seven countries, including Colombia, Ecuador, Panama and Venezuela will still be required to quarantine.

People who are fully vaccinated and arriving from countries such as India, Turkey and Ghana will now have to provide only a negative test after two days.

Airline companies like Ryanair and easyJet had complained that complicated travel restrictions have prevented the tourism industry from recovering from lost business during pandemic lockdowns.

“Restoring people’s confidence in travel is key to rebuilding our economy and leveling up this country,” British Transport Minister Grant Shapps said Thursday. “With less restrictions and more people traveling, we can all continue to move safely forward together along our pathway to recovery.”

Earlier this week, Britain lifted recommendations against nonessential travel to 32 countries, including Ghana and Malaysia. 

Some information for this report came from Reuters.
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First-time claims for U.S. unemployment compensation dropped sharply last week after three straight weeks of increasing numbers of jobless workers filing for benefits, the Labor Department reported Thursday.

A total of 326,000 jobless workers filed for assistance, down 38,000 from the revised figure of the week before, an indication that the U.S. economy, the world’s largest, remains on a general recovery from the worst economic effects of the 18-month coronavirus pandemic.

Still, the claims figure remains well above the 218,000 average in 2019. The jobless claims total has fallen steadily but unevenly since topping 900,000 in early January. Filings for unemployment compensation have often been seen as a current reading of the country’s economic health, but economists and Washington officials will also be closely watching the September job growth number set for release on Friday.

Even as the U.S. said last month that its world-leading economy grew by an annualized rate of 6.7% in the April-to-June period, in August it added a disappointing 235,000 more jobs, a figure economists said was partly reflective of the then surging delta variant of the coronavirus inhibiting job growth.

The August total was down sharply from the more than 2 million combined figure added in June and July. The unemployment rate dipped to 5.2%, which is still nearly two percentage points higher than before the pandemic started in March 2020.

About 8.4 million workers remain unemployed in the U.S. There are nearly 11 million available jobs in the country, but the skills of the available workers often do not match what employers want, or the job openings are not where the unemployed live.

The size of the U.S. economy — nearly $23 trillion — now exceeds its pre-pandemic level as it recovers faster than many economists had predicted during the worst of the business closings more than a year ago. Policy makers at the Federal Reserve, the country’s central bank, have signaled that in November they could start reversing the bank’s pandemic stimulus programs and next year could begin to increase its benchmark interest rate.

How fast the U.S. economic growth continues is unclear, with the delta variant of the coronavirus posing a threat to the recovery even as the number of new cases has been declining in recent weeks, now down to about 100,000 a day from the 150,000 or so that were being recorded. The number of deaths each day has also been dropping somewhat below the 2,000 figure of a few weeks ago.

While more than 68 million eligible Americans remain unvaccinated — and many are refusing to get inoculated — thousands of workers have gotten shots in the last two weeks, some under the threat from their employers that they would be fired from their jobs if they did not.  

U.S. President Joe Biden has ordered workers at companies with 100 or more employees to get vaccinated or be tested weekly for the coronavirus. In addition, he is requiring 2.5 million national government workers and contractors who work for the government to get vaccinated if they haven’t already been inoculated, but it will be weeks before the mandates take full effect.

More than 67% of U.S. adults have now been fully vaccinated against the coronavirus, and overall, 56.1% of the U.S. population of 332 million, according to the Centers for Disease Control and Prevention.
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After bringing the United States to within two weeks of a potential debt default, Congress late Wednesday was on the verge of a deal that would avert the crisis through November by passing a small increase of the limit on how much the federal government is allowed to borrow.

The measure would do nothing to bridge the serious divide between Democrats and Republicans over how to avoid a default on the country’s debts over the longer term. It would also make it likely that by mid-November lawmakers will be dug in on the same battle lines.

That means that the Biden administration and its Democratic congressional allies will be back in crisis mode, looking for ways to avoid a catastrophic default on the country’s financial obligations.

When that happens, one unconventional option that has gained support in recent weeks is likely to be back in the mix: minting a $1 trillion platinum coin to provide the Treasury with the funds it needs to pay the country’s bills in the coming months.

The plan

The plan, according to its proponents, is simple. Treasury Secretary Janet Yellen would order the U.S. Mint to create a single coin in the denomination of $1 trillion. The platinum coin would then be transported to the Federal Reserve, the nation’s central bank, and placed on deposit in the Treasury Department’s account there. Then, when necessary, the Treasury would draw funds from the account to pay the nation’s bills.

The controversial move relies on the statutory power of the Treasury Secretary to authorize the minting of platinum coins “in accordance with such specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the Secretary’s discretion, may prescribe from time to time.”

While it may sound fantastical, the fact that the trillion-dollar coin is part of the conversation in Washington reflects just how fraught the fight over the debt limit, a cap on how much the Treasury can borrow, has become.

Deadline approaching

There is no debate over whether or not the debt limit should be raised. Leaders of both parties insist that the government must be allowed to borrow the money it needs to pay its bills. The fight is over how it ought to be done.

Republicans are demanding that Democrats use a complicated procedure known as “budget reconciliation” to vote on the debt limit. Democratic leaders have rejected that proposal, saying that it is too time consuming and could bring the country dangerously close to the point of default.

Concern that the country might inadvertently lurch into default because of an accident of timing has made the trillion-dollar coin idea more appealing to some because, by all accounts, it could be executed very quickly.

Legal loophole

This week, Philip Diehl, the former director of the U.S. Mint, explained to the news website Axios that it would be possible to design and mint a trillion-dollar coin in a matter of hours. The Mint has an ample supply of platinum “blank” coins, and could easily reconfigure the mold used to produce an existing platinum commemorative $1 coin.

The legal statute that gives the Treasury Secretary the authority to mint a trillion-dollar coin was tucked into a 750-page appropriations bill in 1996, and was never meant to be used to avert a fiscal catastrophe.

The reason why the law specified that the Treasury Secretary’s authority to issue new types of coin was limited to those made of platinum, is because rules already existed limiting the ability to strike coins from metals historically used for money: gold, silver, and copper.

The platinum coins issued by the Treasury are typically commemorative in nature, and are purchased by collectors. However, because the law was not written in a way that specifically bars the Treasury Secretary from minting platinum currency, advocates of the idea say it remains an available option in an emergency.

Idea not new

This is not the first time there have been proposals to use a trillion-dollar coin to get around the debt limit. During the 2011 debt ceiling crisis the idea surfaced among some academics and political commentators, though it didn’t receive broad acceptance.

The idea picked up more momentum in 2012, when it was endorsed by Nobel Prize-winning economist and New York Times columnist Paul Krugman.

Lawmakers took the idea seriously enough that there was a brief effort to pass legislation banning the creation of such a coin in 2013, although it failed.

There has been much speculation about what a trillion-dollar coin might look like, but in the end, that wouldn’t matter much, because virtually nobody would ever see it. The coin would go from the Mint to the Fed — likely to the vaults at the Federal Reserve Bank of New York — and would remain there in perpetuity.

Yellen opposed

The biggest impediment to the plan, at the moment, appears to be Treasury Secretary Janet Yellen herself. Last week, she dismissed the idea during testimony before the House Financial Services Committee.

On Tuesday, she made her opposition to the plan more emphatic in an interview with CNBC.

“I’m opposed to it, and I don’t believe that we should consider it seriously,” she said. “It’s really a gimmick.”

She continued, “What’s necessary is for Congress to show that the world can count on America paying its debts. The platinum coin is equivalent to asking the Federal Reserve to print money to cover deficits that Congress is unwilling to cover by issuing debt. It compromises the independence of the Fed, conflating monetary and fiscal policy. And instead of showing that Congress and the administration can be trusted to pay the country’s bills, it really does the opposite.”

Legal quandary

Supporters of the plan will note one thing that Yellen did not say: That minting the coin would be illegal or illegitimate.

Some argue that if Congress fails to act, the Treasury Secretary might, in fact, be obligated to use her authority to mint new currency to pay the country’s bills.

While the debt ceiling places a real, legal limit on the amount of money the government can borrow, spending bills passed by Congress also legally obligate the administration to spend funds as Congress has specified. Additionally, the 14th Amendment to the Constitution specifies that “The validity of the public debt of the United States … shall not be questioned,” which some legal scholars have interpreted as meaning that allowing a debt default would be unconstitutional.

Rohan Grey, a professor of law at Willamette University, said that Yellen’s belief that the trillion-dollar coin is a “gimmick” would be no defense if minting the coin were the only thing standing between the United States and default.

“You can’t say, I find this silly or uncomfortable, therefore, I’m going to intentionally violate the Constitution,” he told VOA. “Their obligation is to honor the debts under the 14th Amendment and to honor Congress’s spending directives.”

Lesser of two evils

While minting a trillion-dollar coin might avoid a technical default on the nation’s debts, some experts worry about the effect such a radical proposal would have on public perceptions.

The idea is so “wacky,” said Kenneth Kuttner, Williams College professor of economics, that it might undermine the faith that ordinary people, and even sophisticated financial markets participants, have in the U.S. government.

“They’re managing things so poorly that they’re having to resort to these gimmicks to obviate [raising] the debt ceiling?” he told VOA. “That may look bad for regular people and for the financial markets.” 

 
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The U.S. Senate appeared near to a temporary deal to avert a federal debt default in the next two weeks, after Democrats said Wednesday that they might accept a Republican proposal to defuse the partisan standoff that threatens the broader economy.

Democrats called off an early-afternoon vote after the Senate’s top Republican, Mitch McConnell, floated a plan that would buy more time to resolve the issue. McConnell proposed that his party would allow an extension of the federal debt ceiling into December.

Without congressional action to raise the $28.4 trillion debt limit, the Treasury Department has forecast that it will run out of ways to meet all its obligations by October 18. The Bipartisan Policy Center said Wednesday that unemployment insurance payments, salaries for millions of federal employees and medical insurance payments could be delayed without a debt-ceiling hike.

No official acceptance yet 

Several Democrats said they would accept the Republican offer. “We intend to take this temporary victory,” Democratic Senator Tammy Baldwin said on CNN.

But without a statement from Senate Democratic leader Chuck Schumer, it was not clear whether that was the party’s official stance, and the White House did not commit to the idea. The White House has yet to receive a formal offer, spokeswoman Jen Psaki said.

Still, Democrats would have to address the issue again in December, just as federal funding is due to expire. That could complicate their efforts to pass two massive spending bills that make up much of Biden’s domestic agenda.

Republicans said Democrats could use the intervening weeks to pass a longer debt-ceiling extension through a complex process called reconciliation, which Democrats have dismissed as too cumbersome and risky. McConnell said Republicans would make concessions to help speed the process up.

Republicans had been expected to block the bill that was up for a vote Wednesday, which suspended the debt limit until December 2022, after the midterm elections that will determine which party controls Congress for the next two years.

Dangers of default

Analysts say a default could upend the global financial system and cause millions of lost jobs.

Even a close call would likely be damaging. A 2011 debt ceiling dispute that Congress resolved two days before the borrowing limit was due to be reached caused stocks to tumble and prompted a first-ever credit downgrade for U.S. debt.

Moody’s Investors Service said on Tuesday that it expected Washington would ultimately raise the debt limit, however, and U.S. stock indexes rose on Wednesday as investors grew more optimistic that Congress could reach a deal.

A more telling indication of investor relief was evident in the U.S. Treasury market, which would be directly affected by a U.S. default. Rates on one-month Treasury bills — the securities most likely to be impaired by a failure of the government to pay interest or principal on the debt immediately after the deadline — dropped sharply, an indication that investors were again willing to buy them.

Democrats had considered other options to resolve the standoff.

Biden said Tuesday that Democrats might weaken a long-standing rule, known as the filibuster, which requires 60 votes to advance most legislation in the 100-seat Senate. But that notion seemed to fade on Wednesday, as a key centrist Democrat, Senator Joe Manchin, said he would not support it.
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Amazon.com Inc.’s livestreaming e-sports platform Twitch said Wednesday that it had been hit by a data breach. It gave no details.

An anonymous hacker claimed to have leaked Twitch data, including information related to the company’s source code, clients and unreleased games, according to Video Games Chronicle, which first reported the news of the hack.

Twitch confirmed the breach and said its “teams are working with urgency to understand the extent of this.”

The company declined to comment further and said ((https://twitter.com/Twitch/status/1445770441176469512)) it would “update the community as soon as additional information is available.” Amazon did not immediately respond to a request for comment.

The hacker’s motive was to “foster more disruption and competition in the online video streaming space,” according to the Video Games Chronicle report.

About 125GB of data was leaked, including information on Twitch’s highest-paid video game streamers since 2019, such as a $9.6 million payout to the voice actors of popular game “Dungeons & Dragons” and $8.4 million to Canadian streamer xQcOW, the report said.

“Twitch leak is real. Includes significant amount of personal data,” cyber security expert Kevin Beaumont tweeted.

Twitch, which has more than 30 million daily visitors on average, has become increasingly popular with musicians and video gamers. They interact with users while live streaming content.

The platform, which was boycotted earlier this year by users for not doing enough to block harassment, previously made a move to ban users for offenses such as hate-group membership and credible threats of mass violence.
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The U.S. Congress is locked in a standoff that risks triggering a financial and economic meltdown if lawmakers don’t raise a limit on government borrowing before Oct. 18, the day the U.S. Treasury could run out of cash for paying government bills.

The drama’s central players are Senator Mitch McConnell, who leads the Republican minority in the Senate and has vowed to obstruct normal legislative efforts to raise the debt ceiling, and Senator Chuck Schumer, leader of the chamber’s Democratic majority and an ally of President Joe Biden.

Here are some ways the battle might play out in the Senate

Reconciliation 

Schumer has twice tried to win approval of a debt ceiling increase under regular legislative procedures and is set to try again on Wednesday.

Prior attempts were blocked by McConnell’s Republicans, who have used the Senate’s filibuster rule which requires a 60-vote majority to approve most legislation. The 100-member chamber is evenly split and Democrats can only muster 51 votes when Vice President Kamala Harris casts a tie-breaking vote.

If Schumer’s attempt on Wednesday fails, as expected, the Democrat could switch to using an arcane legislative process known as reconciliation. That bypasses the filibuster and Democrats would only need a simple majority to win.

This path carries its own risks, however, as congressional rules would require a lengthy process in both the House of Representatives and Senate.

McConnell relents

McConnell could lift the Republican filibuster blockade in the vote on Wednesday or in subsequent days if Schumer sticks with his current strategy and keeps bringing up the failed bill or a similar one for votes.

Financial market investors have so far been largely sanguine about the risks, betting that Washington won’t manufacture a financial crisis by defaulting on its debt. But as Oct. 18 approaches, markets could swoon, ramping up pressure on McConnell. 

Filibuster reform

Democrats and Republicans have periodically sparred over the debt ceiling, particularly over the last 10 years as Washington has grown more polarized.

In the past, a minority party has often used the debate as leverage to pass other legislative priorities, such as deficit reduction. On Monday, McConnell has said his party has no demands and merely wants Democrats to use the reconciliation process.

Schumer could counter by moving to ban the use of the filibuster on debt ceiling bills, said William Hoagland, a former Republican Senate staffer now at the Bipartisan Policy Center.

There are risks, however. Changing Senate rules would require every vote the Democrats can muster and some prominent members of the party are diehard supporters of the filibuster.

Default

While not seen as a likely scenario, if Washington exhausts the few remaining tools it has for coping with its $28.4 trillion borrowing limit around Oct. 18, it will only have incoming tax receipts for paying its bills.

And because it currently borrows more than 20 cents for every dollar it spends, the Treasury would start missing payments owed to lenders, citizens or both.

Shock waves would ripple through global financial markets. Domestic spending cuts would push the U.S. economy into recession as the government misses payments on everything from Social Security benefits for the elderly to soldiers’ salaries.
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Consumers around the globe face higher prices for a wide variety of everyday purchases, as supply chain problems bedevil markets for all manner of goods, and energy prices spike to highs not seen in years. 

That means consumers around the world are paying more for items like food, clothing and household supplies, and for major purchases like cars, appliances and homes. The impact is felt most acutely by low-income families, who find that their limited incomes cover fewer of their immediate needs than before. 

The question on the minds of many economists, however, is whether surging prices really are “transitory,” as senior officials in the United States have been saying for months, or are they the beginning of a period of more sustained price growth than most of the world’s major economies have seen in decades. 

In testimony before Congress last week, Federal Reserve Chair Jerome Powell said that “frustrating” global supply chain problems resulting from the end of pandemic lockdowns have extended a period of inflation longer than he and other central bankers had originally expected. But he said he remained confident that they would eventually resolve themselves. 

“The current inflation spike is really a consequence of supply constraints meeting very strong demand, and that is all associated with the reopening of the economy, which is a process that will have a beginning, a middle and an end,” Powell said. “We see those things resolving. It’s very difficult to say how big those effects will be in the meantime or how long they will last.” 

Inflation concerns

Some economists, however, worry that the Fed is underestimating the forces driving prices on everything from food to automobiles.

“There are very many reasons to think that this inflation is not transitory — that it’s going to be with us for quite a while,” Desmond Lachman, a senior fellow at the American Enterprise Institute in Washington, told VOA. 

On Tuesday, the price of the global benchmark for oil, Brent crude, rose to $82.56 per barrel, hitting a level not seen in three years. Worldwide, prices for food, fuel and consumer goods are on the rise. 

The price of natural gas has more than tripled in Europe and Asia this year, leading to economic slowdowns in much of Europe and power cuts in China. Even in the United States, which normally has a plentiful supply of the fuel, prices are jumping on concern that there may be shortages in the winter months. 

The big picture 

In the United States, a widely watched inflation index, which excludes food and energy prices in order to minimize volatility, has been persistently above an annualized rate of 3.6% since the summer — far higher than the rate of less than 2% in recent years. Housing prices, a major element of inflation indices, are rising sharply. 

Meanwhile, the Federal Reserve continues to pursue policies that make it cheap to borrow money, which many economists believe is creating more inflationary pressure. 

“When you put the whole picture together, and you consider that the Fed has got its pedal to the metal at the same time as the administration is engaging in a record amount of peacetime budget stimulus, all of this doesn’t look to me like inflation is coming down anytime soon,” said Lachman. 

Central bank tools 

However, not all economists are as concerned as Lachman. 

“In some sense [inflation] does seem a little more than transitory,” Jonathan Wright, a professor of economics at Johns Hopkins University, told VOA. “If you’d asked me a few months ago, I would have been more confident that this was limited to a few special sectors,” he said. “Now it seems to be something broader, the costs of shipping being a big part of that.”

However, Wright said he agrees with Powell that the eventual resolution of the supply chain bottlenecks, like the current backlog of dozens of container ships off the coast of California and the glut of shipping containers at rail yards in the American Midwest, will address much of the problem. He said he doesn’t anticipate prolonged inflation.

In part, he said, that’s because central banks, like the Fed, have a better understanding of how and when to act against spikes in inflation than they did the last time the U.S. faced a major inflation crisis in the late 1970s. 

“The Fed is very aware of the problem,” he said. “If inflation comes in meaningfully above target next year, the Fed will tighten [monetary policy] quickly towards the end of the year.” 

Inflation expectations 

A question related to the impact of supply chain pressures on inflation is whether rising prices could become a self-reinforcing phenomenon separate and apart from the economic realities driving them.

That could happen if consumers, as a group, come to believe that prices are going to continue to rise at a high rate, and therefore begin making purchases that they might otherwise have postponed. The injection of more spending into the marketplace would create the upward pressure on prices that the consumers were trying to avoid in the first place. 

In a press call on Tuesday, Adam Posen, president of the Peterson Institute for International Economics, and Karen Dynan, a senior fellow at the organization and a professor of economics at Harvard University, responded to a question from VOA about inflation expectations. 

Dynan said that she didn’t expect a relatively short period of inflation to move public expectations very much. 

“We have had decades in the United States, and in some other rich countries, where inflation has been at 2%. Over the last decade, it’s been kind of hard to keep it that high. So I don’t know that the experience of a few months is going to kind of undo all that,” she said. 

Posen said he believes that the effects of consumer expectations are “exaggerated” and that an aggressive anti-inflationary stance by the Fed, combined with broad international price competition, will help to keep inflationary pressures in check. 

 
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Many Nigerians are optimistic as Africa’s largest economy gears up to launch the continent’s first central bank-backed digital currency, the eNaira. Authorities hope to tap into the popularity of cryptocurrency so it can better monitor digital currency transactions, curb black market trading in the paper naira and also help integrate millions of Nigerians into banking. But critics say the digital currency will also give Nigeria’s central bank more control.

The launch of the Central Bank of Nigeria (CBN) digital currency, or the eNaira, was initially scheduled for October 1 as part of activities to mark Nigeria’s Independence Day – but was postponed by authorities.

The CBN’s communications director, Osita Nwanisobi, did not disclose the new launch date in a statement released on the bank’s social media handle.

But local reports say the eNaira website recorded more than one million hits in the hours ahead of the initial launch – what blockchain experts like Janet Kaatyo say is a welcome development.

“It is going to make cross border payments easier and it is going to make it easier for the naira to be widely used and accepted,” said Kaatyo. “So, Nigeria is gradually getting to the point where cryptocurrency is seen as an unstoppable force.”

Kaatyo believes the eNaira will promote blockchain technologies like cryptocurrency, which Central Bank authorities banned in back in February, citing its volatility and investment risk for citizens.

The CBN then promised to provide a safer alternative – the eNaira. Authorities and experts say the eNaira will ease monetary transactions and improve long-term value for Nigeria’s currency, compared to its paper counterpart, which has hit its lowest value since 2003.

The CBN also says the eNaira saves on printing and distribution costs for cash.

Digital strategist, Daniel Yerimah says the eNaira will also help address money laundering and corruption.

“Everything built on blockchain is very safe and secure. Another thing again is it’s universal, parts of the benefits they intend to achieve with the eNaira is it will be used for both international and local trade and also it’s going to be to fight corruption,” Yerimah said.

But some experts warn the emergence of the eNaira will cut off roles played by intermediary banks and give the central bank more control over citizens’ financial rights.

However, blockchain analyst Jadel Chidi disagrees.

“There’s a direct link between the Central Bank and the individual who uses the eNaira but that will not put the other banks out of business,” Chidi said. “What I see is that the CBN will eventually create a portal where each eNaira user will be able to access their e-wallet through the database they already have with their bank.”

In recent years Nigeria has seen a move toward cryptocurrencies as citizens looked for alternatives to the weakening naira. 

Now millions are waiting to see if they can benefit from Nigeria’s digital currency.
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Container ships anchored off the coasts of the United States have been told they could face a four-week delay before being allowed to dock and unload goods consumers are eagerly awaiting and the parts needed by American manufacturers.

Across the Atlantic in Britain, too, empty supermarket shelves, and frustrated drivers forming long lines at gas stations to fill up, tell a similar story of an unprecedented strain on cross-border global supply chains. 

The pandemic has wreaked havoc on the world’s traditional supply chains. Congestion at ports, factory closures, soaring freight charges and an acute shortage of transport workers is likely to get worse, the International Chamber of Shipping and allied transport groups have warned.

In a letter to the United Nations General Assembly last week, they warned of a “crumbling” global supply chain.

Before the pandemic, synchronized cross-border supply chains could be relied on to move goods, raw materials, and parts just before they were needed by stores and factories.

But the chains are snapping.

The continent of Europe is also facing disrupted supply chains, although not as critical at this stage as Britain, where post-pandemic delivery challenges have been intensified by trade disruption consequences of Brexit.

Labor shortage 

“The logistics sector lacks qualified personnel such as lorry drivers but also trained locomotive drivers, inland navigation workers, terminal workers, as well as management people,” Frank Huster, director of Germany’s main haulage association, told European broadcasters.

The EU transport industry reckons it has a shortfall of more than 300,000 qualified truck drivers.

From Los Angeles to London, Beijing to Berlin, countries are seeing a supply crunch rarely experienced outside wartime. According to the American freight industry the average time it takes now for a package to be sent from Asia to the U.S. has increased by 43% since last year.

The supply crunch is a consequence of a sudden surge in demand for goods, labor and energy as national economies emerge from the slowdown of the pandemic, say economists. That surge has strained the supply chains from assembly to delivery.

Factories in China and other Asian industrial hubs that have been trying to gear up rapidly amid soaring prices for energy, struggling with blackouts as they do so. Stores and supermarkets in Western countries are struggling to find sufficient shop staff. Transport companies are scrambling to find delivery drivers.

Now retailers in America and Europe are warning of increasing shortages as the logjams of container ships are prolonged and amid a labor shortage in the retail, leisure and entertainment sectors.

And the problem is likely to get worse before it gets better, say economists and business owners.

The U.S. and Europe are heading into the high consumer spending months of Thanksgiving and Christmas and retailers are already warning of insufficient supplies of electronic and sporting goods and even of Turkeys and Christmas trees.

Local factors have worsened the crunch in some cases. In America, Republican lawmakers say pandemic-related increases in unemployment benefits have contributed to the lack of workers. Others say low wages have prompted people to rethink their careers and for some approaching retirement age to drop out of the workforce.

Brexit fallout 

In Britain, the impact of Brexit — which has complicated the movement of goods and food between the U.K. and the 27 member states of the European Union — has become a source of contention between government ministers and business leaders.

The latter blame the government for having ill-planned Britain’s departure from the EU. Conservative cabinet ministers blame industry for empty shelves and gas shortages saying businesses should have prepared for a post-Brexit economy. They contend that the country’s supply crunch is a failure of the free market, and not the state. 

“When you talk about some of the supply chain issues, that’s really a function of the world economy, particularly the UK economy, coming back to life after COVID,” said British Prime Minister Boris Johnson Monday. “There is a shortage of lorry drivers actually around the world, from Poland to the United States, and even in China they are short of lorry drivers,” he added.

Local factors aside, though, some logistics experts say a global supply crunch has long been in the offing. They say supply chains, as they have developed, have lacked resilience and were overly vulnerable to economic shocks.

John Manners-Bell, chief executive of Transport Intelligence, a market research company that advises the World Bank and the United Nations on global logistics, says businesses and governments have neglected supply chains and failed to invest enough in them or update them. Transport and freight workers have for too long been poorly paid, he says.

“Whilst all attention is naturally focused on present supply chain disruption, there will be positives to come out of the chaos [hopefully],” he tweeted this week. Among them: “Governments will invest more in transport infrastructure and overhaul outdated working practices [especially in ports and shipping]” and “Companies will invest more in technologies that improve the current [poor] efficiency of transport assets especially trucking.”

He also hopes manufacturers will “recognize that single sourcing from China is not a good idea.” 
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With time ticking down on his term as chairman of the U.S. Federal Reserve Board, Jerome Powell’s reappointment to the post looks less certain than it did just a few weeks ago, as left-leaning Democrats hammer away at a series of scandals involving senior Fed personnel. 

On Monday, Powell’s chief antagonist in Congress, Senator Elizabeth Warren, released a letter to the head of the Securities and Exchange Commission asking the agency to investigate “ethically questionable” securities transactions by the presidents of two of the Federal Reserve’s district banks, and the Fed Board’s vice chairman. 

The letter came less than a week after Warren castigated Powell during a Senate Banking Committee hearing over what she sees as his lax regulatory approach toward large financial institutions.

“Your record gives me grave concerns,” Warren said, addressing Powell directly at the hearing. “Over and over, you have acted to make our banking system less safe, and that makes you a dangerous man to head up the Fed. And it’s why I will oppose your renomination.” 

Renomination still likely 

Powell’s four-year term as leader of the U.S. central bank will expire in February, and it has been broadly assumed that President Joe Biden would renominate him to another term. Experts say they still expect Powell to be renominated but feel less certain of that outcome than they did a few weeks ago. 

“I think he’s much more likely than not (to be renominated),” David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution, told VOA. “But it did move the needle a little bit, and not in his direction.”

“I still think it’s reasonable to assume that Powell is renominated, because he has enjoyed, for the most part, bipartisan support,” Mark Hamrick, senior analyst and Washington bureau chief for Bankrate.com, told VOA. 

“The Federal Reserve was relatively quick in responding to the dire financial conditions that were created by the pandemic lockdowns, and it fairly effectively and fairly quickly restored order to markets,” he said.

However, the questionable investing by Fed officials on his watch may be eroding what had been substantial support for Powell, even among generally progressive Democrats. 

In a note to clients last week, Karen Petrou, managing partner of Federal Financial Analytics, wrote, “One of Mr. Powell’s strengths in the renomination battle has been divisions among Democratic progressives, making this resonant scandal particularly costly to his otherwise-strong position within the Biden Administration.” 

Questionable trading 

Last month, the Fed announced an investigation of the central bank’s ethics policies after reports surfaced that the presidents of the Federal Reserve Banks of Boston and Dallas had been actively trading in the stock market and in real estate at the same time that they were helping to set the nation’s monetary policies. Both said their investment activities complied with all applicable laws and Fed guidelines, and both announced their retirement on September 27. 

On Friday, Bloomberg reported that Federal Reserve Board Vice Chairman Richard Clarida bought between $1 million and $5 million in stock the day before Powell made a major speech on efforts to help the U.S. economy recover from the pandemic.

When Bloomberg reported Clarida’s trading activity, the Fed issued a statement sayingthe transactions were part of a “a pre-planned rebalancing to his accounts” that were pre-cleared by the Fed’s ethics officials, and that the timing was coincidental. 

Powell addressed the trading activity of the two bank presidents during congressional hearings last week, noting that while the trading activity was technically within the rules established by the Fed, the appearance of the activity was “just obviously unacceptable.” 

“[T]he problem is that the rules, the practices and the disclosure needs to be improved,” Powell said during congressional testimony, adding, “We will rise to this moment.” 

Investigation demanded 

In her letter to the SEC, Warren called out Powell by name. 

“It is not clear why Chair Powell did not stop these activities, which corrode the trust and effectiveness of the Fed. The Fed officials’ trades clearly run afoul of Fed guidelines stating that officials should ‘avoid any dealings or other conduct that might convey even an appearance of conflict between their personal interests, the interests of the System, and the public interest,'” she said. 

While Warren may not ultimately succeed in derailing a renomination of Powell, a Republican who was appointed to his first term by former President Donald Trump, her efforts may still have a major impact on the Fed. The Biden administration has a number of important central bank appointments to make, in addition to the chair.

‘Personnel is policy’ 

“She’s clearly using this as a way to make it difficult for the administration to reappoint Powell,” Wesel said, adding, “It’s pretty clear that the Biden White House cares a lot about what Elizabeth Warren thinks. And it’s pretty clear that Elizabeth Warren has figured out that personnel is policy.” 

The Federal Reserve Board is made up of seven governors who are appointed by the president and serve overlapping terms of 14 years each. From among the sitting board members, the president also appoints the Fed’s chair, vice chair, and vice chair for supervision to four-year terms. 

There is currently one empty board seat, and another will open up when Clarida’s term expires in January. The four-year-term of the current vice chair for supervision will end October 13. 

Warren and others on the left have made it clear that they would prefer to see sitting Fed Governor Lael Brainard replace Powell as Fed chair. But if Biden were to make her the vice chair for supervision and promise to add more left-leaning members to the board, that might help assuage their concerns about a Powell reappointment, according to analysts.

“There’s going to be some horse trading around this,” said Jesse Van Tol, president of the National Community Reinvestment Coalition. “I can still see a scenario where the administration decides it’s in their interest to trade to get a few other Fed governors confirmed and leave Powell in place, if they believe they can trust him and work with him.” 

 
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The top United States trade negotiator said China is failing to live up to its trade commitments from last year and that Washington would soon have “frank conversations” with Beijing.  

In a speech Monday in Washington, U.S. Trade Representative Katherine Tai said, “China made commitments intended to benefit certain American industries, including agriculture, that we must enforce.” 

China committed to adding an extra $200 billion in purchases of U.S. exports as part of the Phase One trade deal negotiated during former President Donald Trump’s administration. 

Tai said China has fallen short of its purchase promises and said she would seek a meeting with her Chinese counterpart, Vice Premier Liu He, to review the matter. 

“Above all else, we must defend — to the hilt — our economic interests,” Tai said at Monday’s event, hosted by the Center for Strategic and International Studies. 

Continuing Trump’s approach   

William Adams, a senior vice president and senior economist with PNC Financial Services Group, characterized the overall message of Tai’s speech as “one of continuity with the Trump administration’s approach to U.S.-China trade relations.” 

U.S. President Joe Biden has kept the tariffs imposed by Trump in place while Tai conducted a months-long review of U.S. trade policy with China.    

Tai said Monday that going forward, the Biden administration would exclude some Chinese imports from tariffs imposed by Trump. Most previous tariff exclusions expired at the end of last year. 

While she rejected the idea of Phase Two talks, as envisioned by Trump, to discuss China’s domestic subsidies and other matters, she said such issues would still be part of U.S. talks with China going forward.  

U.S. trade groups, which had been pushing the Biden administration to move quickly in laying out its China trade policy, largely welcomed Tai’s remarks.

“We applaud her readiness to engage in discussions with her Chinese counterparts” on trade issues, and “we agree with Ambassador Tai that China must be held accountable for their commitments under the Phase One agreement,” Doug Barry, spokesman for US-China Business Council, told VOA.   

However, Barry said that his organization was still concerned about the possibility of more tariffs and that exclusions to tariffs were particularly important for farmers in the Midwest. 

Tai did not rule out opening new investigations under Section 301 of the Trade Act of 1974, which could lead to new sanctions against China.  

‘Zero-Sum Dynamic’

One source of tension is the subsidies China gives to industries including steel, solar and semiconductors which make it harder for U.S. companies to compete on the global market.  

Tai described the situation as a “zero-sum dynamic” where “China’s growth and prosperity come at the expense of workers and economic opportunity here in the U.S. and other market-based democratic economies.” 

In the past, Chinese President Xi Jinping has said it is important to the country’s national security to make Chinese goods essential to global supply chains.  

“The dependence of the international industrial chain on our country has formed a powerful countermeasure and deterrent capability for foreign parties to artificially cut off supply,” Xi said in a speech in 2020. 

In recent weeks as China has cracked down on its tech sector, Chinese Vice Premier Liu He sought to reassure business leaders that government support for industry will continue. “Guidelines and policies for supporting the private economy have not changed… and will not change in the future,” Liu said according to a report from Xinhua news agency. 

‘May Not Change’ 

Gary Hufbauer, a senior fellow at the Peterson Institute for International Economics, told VOA in an interview that Tai was “very critical” of Chinese subsidies and that her zero-sum view of China is “very much in the thinking of the Trump administration.”   

Tai’s speech also highlighted the Biden’s administration’s goal of working closer with allies to confront China, a difference from the Trump administration’s approach.    

“The core of our strategy is a commitment to ensuring we work with our allies to create fair and open markets,” Tai said.    

Tai said the United States would also focus on investing in U.S. workers and infrastructure across the country to “give American workers and businesses the boost needed to embrace their global competitiveness.” 

She described the U.S.-China trade relationship as “one of profound consequence” and said the objective of engaging with China is “not to inflame trade tensions.” 

“As the two largest economies in the world, how we relate to each other does not just affect our two countries. It impacts the entire world and billions of workers,” she said.  

A senior Biden administration official told reporters Monday that China is “increasingly explicit that it is doubling down on its authoritarian, state-centric approach and is resistant to addressing our structural concerns.”   

The official said, “We recognize that China simply may not change, and that we have to have a strategy that deals with China as it is rather than as we might wish it to be.” 

Yinan Wang, Lin Yang and Forest Cong of the Mandarin Service contributed to this report. 
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World leaders, politicians and pop stars are among the thousands of individuals revealed to be concealing huge wealth through a network of anonymous companies.

The documents, known as the Pandora Papers and published Sunday, are part of a leak of almost 12 million files from the archives of several legal firms, which shed light on the secret world of offshore finance. They are being analyzed by a team of more than 600 journalists.

Among the most startling revelations in the Pandora Papers is the hidden wealth of the president of Azerbaijan, Ilham Aliyev, and his family. The leaks show the Aliyevs and their associates traded property in Britain worth $544 million over the past 15 years.

“Since this family took power in 1993, they have taken control of many of the country’s vital industries and its natural resources and used that to amass wealth,” said Rachel Davies Teka, head of advocacy at the anti-corruption campaign group Transparency International UK. “And this is being done at the expense of the people of that country. There are people who are suffering because their leaders are taking resources which should be shared out amongst those countries’ citizens,” Davies Teka told VOA.

Jordanian king’s property empire 

The leaked documents show that King Abdullah II of Jordan has a secret property empire in the United States and Britain worth more than $100 million, using anonymous offshore companies incorporated in the British Virgin Islands in the Caribbean. In a statement, the Jordanian royal palace said that the foreign properties were not disclosed for security and privacy reasons, adding that they were purchased using the monarch’s private wealth. 

During a meeting with tribal elders Monday, Abdullah rejected allegations he had tried to conceal his wealth. “Unfortunately, there is a campaign against Jordan; there are still people who want to sow discord and build doubt between us. There is nothing I have to hide from anyone, but we are stronger than this, and this is not the first time Jordan gets targeted,” the king said. 

Pakistani Cabinet ministers and their families, including close allies of Prime Minister Imran Khan, are revealed to own offshore companies worth millions of dollars. Khan said they would be investigated.

Czech Prime Minister Andrej Babiš, the country’s second-richest person, used anonymous offshore companies to finance the purchase of an $18 million property in France. Babiš is competing in a general election this week. In a televised debate with rival candidates, he defended his actions.

“The money was sent out of a Czech bank. The money was taxed. It was my money and it returned back to the Czech Republic,” he told the television audience in Prague on Sunday. 

Kenyan President Uhuru Kenyatta and six members of his family are linked to more than a dozen offshore companies, one with assets worth at least $30 million. There is no evidence that the Kenyatta family stole any state assets.

In a statement issued by the office of the president, Kenyatta welcomed the publication of the Pandora Papers. 

“These reports will go a long way in enhancing the financial transparency and openness that we require in Kenya and around the globe. The movement of illicit funds, proceeds of crime and corruption thrive in an environment of secrecy and darkness. The Pandora Papers and subsequent follow up audits will lift that veil of secrecy and darkness for those who cannot explain their assets or wealth,” the statement read.

Music stars, including Shakira and Elton John, and Indian cricket legend Sachin Tendulkar are also revealed to have set up offshore companies. There is no suggestion of wrongdoing concerning any of their financial activities.

Much of the activity revealed by the Pandora Papers, including use of offshore companies, is legal. Governments must do more to reveal hidden wealth, argues Davies Teka.

“This investigation and what these journalists have uncovered is vital because, unfortunately, governments, particularly in the West, are not doing enough to bring transparency to where all this money is moving to — where this money is being hidden,” she told VOA.

Role of London 

One thread that is common to many of the revelations is London. The capital and the British Overseas Territories linked to it, such as the British Virgin Islands, offer a hidden network of legal structures designed to conceal who really owns the money, says Davies Teka.

“You can buy property anonymously if you use a company that’s registered and formed in an overseas territory where there is currently secrecy. We also have luxury services on offer to the global elite, and, unfortunately, we have a concerning amount of professionals, accountants, lawyers, estate agents who are happy to help corrupt and criminal actors launder and hide and manage their wealth.”

The British government has put forward legislation to prevent individuals from using offshore companies to conceal ownership. “However, for three years now they have hesitated to lay this legislation down in parliament and actually pass it, which raises questions about how serious they really are about tackling this problem,” Davies Teka said. 

Britain’s ruling Conservative Party has become embroiled in the accusations after the leaks revealed party donors were linked to alleged corruption. Speaking at the start of the weeklong Conservative Party conference Monday, Prime Minister Boris Johnson rejected accusations that his party had accepted corrupt money.

“All I can say on that one is that all these donations are vetted in the normal way,” he told reporters.

British Chancellor Rishi Sunak denied that London’s reputation on tax avoidance was “shameful” and said the government had a strong track record on tackling global corruption. 
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Trading in shares of heavily indebted China Evergrande was suspended on Monday, days after some bondholders said the property developer at the center of jitters over China’s financial system had missed a second key bond interest payment. 

Shares of its unit Evergrande Property Services Group were also suspended, the Hong Kong stock exchange said. The bourse didn’t say why trading in the companies’ stock had been halted, and it was unclear who had initiated the suspension. 

Evergrande did not immediately respond to a request for comment. 

With liabilities stretching into hundreds of billions of dollars, equal to 2% of China’s gross domestic product, Evergrande has sparked concerns its woes could spread through the financial system and reverberate around the world. Initial worries have eased somewhat after China’s central bank vowed to protect homebuyers’ interests. 

Monday’s share trading suspension sent a shiver through broader financial markets, which remain nervous about contagion, knocking the offshore yuan a little lower and weighing on the Hang Seng benchmark index and especially financials and other developers. Guangzhou R&F Properties Co Ltd fell 7%, Sunac China Holdings and Country Garden each fell 4%. 

Shares in Evergrande have plunged 80% so far this year, while its property services unit has dropped 43% as the group scrambles to raise funds to pay its many lenders and suppliers.   

Stock in its electric vehicle unit, China Evergrande New Energy Vehicle Group, fell as much as 8% early on Monday before paring losses. 

The cash-strapped group said on Sept. 30 that its wealth management unit had made a 10% repayment of wealth management products, which are largely owned by onshore retail investors, that were due by the same date. 

Once China’s top-selling property developer and now expected to be the subject of one of the largest-ever restructurings in the country, Evergrande has been prioritizing domestic creditors over offshore bondholders. 

The two offshore payments, which bondholders said failed to arrive by their due date, come as the company, which has nearly $20 billion in offshore debt, faces deadlines on dollar bond coupon payments totaling $162.38 million in the next month. 

Beijing is prodding government-owned firms and state-backed property developers to purchase some of Evergrande’s assets, sounding them out either directly or indirectly about asset purchases, people with knowledge of the matter told Reuters last Week. 

Meanwhile Chinese property group Hopson Development said in a statement on Monday it had suspended trading in its shares, pending an announcement related to a major acquisition by Hopson of a Hong Kong-listed firm and a possible mandatory offer. 

It was unclear whether the deal was related to Evergrande Group, and Hopson did not respond to a request for further comment. 

Shares of Hopson, which has a market value of $7.8 billion, have jumped 40% so far this year. 
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British Prime Minister Boris Johnson said on Sunday he would not return to “uncontrolled immigration” to solve fuel, gas and Christmas food crises, suggesting such strains were part of a period of post-Brexit adjustment. 

At the start of his Conservative Party’s conference, Johnson was again forced to defend his government against complaints from those unable to get petrol for their cars, retailers warning of Christmas shortages, and gas companies struggling with a spike in wholesale prices. 

The British leader had wanted to use the conference to turn the page on more than 18 months of COVID-19 and to refocus on his 2019 election pledges to tackle regional inequality, crime and social care. 

Instead, the prime minister finds himself on the back foot nine months after Britain completed its exit from the European Union — a departure he said would give the country the freedom to better shape its economy. 

“The way forward for our country is not to just pull the big lever marked uncontrolled immigration, and allow in huge numbers of people to do work … So, what I won’t do is go back to the old, failed model of low wages, low skills supported by uncontrolled immigration,” he told BBC’s Andrew Marr Show. 

“When people voted for change in 2016 and … again in 2019 as they did, they voted for the end of a broken model of the UK economy that relied on low wages and low skill and chronic low productivity, and we are moving away from that.” 

It was the closest the prime minister has come to admitting that Britain’s exit from the EU had contributed to strains in supply chains and the labor force, stretching everything from fuel deliveries to potential shortages of turkeys for Christmas. 

“There will be a period of adjustment, but that is I think what we need to see,” he said. 

But he was clear he would not open the taps of immigration to fill such gaps, again shifting the responsibility to businesses to lift wages and attract more workers. 

Shortages of workers after Brexit and the COVID-19 pandemic have sown disarray in some sectors of the economy, disrupting deliveries of fuel and medicines and leaving more than 100,000 pigs facing a cull due to a lack of abattoir workers. 

Conservative Party chair, Oliver Dowden, said that the government was taking measures to hire more truck drivers in general and that the government had started training military tanker personnel to start fuel deliveries on Monday. 

“We will make sure that people have their turkey for Christmas, and I know that for the Environment Secretary George Eustice this is absolutely top of his list,” he told Sky News. 

Rather than the reset Johnson hoped to preside over in the northern English city of Manchester, the conference looks set to be overshadowed by the supply-chain crises and criticism of the government’s withdrawal of a top-up to a state benefit for low-income households. 

Johnson may also come under fire for breaking with the Conservatives’ traditional stance as the party of low taxes after increasing them to help the health and social care sectors. 

“We don’t want to raise taxes, of course, but what we will not do is be irresponsible with the public finances,” he said. 

“If I can possibly avoid it, I do not want to raise taxes again, of course not.” 

 
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Life in the United States in 2021 seems more normal than the year before. The arrival of vaccines means the relaxing of rules for restaurant goers and sports enthusiasts. Even the impact of the delta variant is much less on the U.S. economy than in 2020 when shutdowns forced small businesses to close temporarily or permanently. Yet during the peak of the 2020 pandemic, a few people opened businesses, including these in California, and persevered through the odds.

Camera: Michelle Quinn, Roy Kim
Contributor: Mike O’Sullivan
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U.S. President Joe Biden said on Saturday he was going to “work like hell” to get both an infrastructure bill and a multi-trillion-dollar social spending bill passed through Congress and plans to travel more to bolster support with Americans.

Biden visited the Capitol on Friday to try to end a fight between moderates and left-leaning progressives in his Democratic Party that has threatened the two bills that make up the core of his domestic agenda.

The president on Saturday acknowledged criticism that he had not done more to gin up support for the bills by traveling around the country. He noted there were many reasons for that, including his focus on hurricane and storm damage during recent trips, among other things.

Biden said he would be going around the country “making the case why it’s so important” and making it clearer to people what is in the two bills.

He said he wanted with the bills to make life more livable for ordinary Americans by making child care affordable, for example.

“There’s nothing in any of these pieces of legislation that’s radical, that is unreasonable,” Biden said. “I’m going to try to sell what I think the people, the American people, will buy.”

Biden expressed confidence that both bills would get passed but declined to set a deadline, such as the November Thanksgiving holiday, for when that would happen.

“I believe I can get this done,” Biden said.

Moderate Democratic lawmakers wanted an immediate vote on a $1 trillion infrastructure bill in the House of Representatives that has already passed the Senate, while progressives want to wait until there is agreement on a sweeping $3.5 trillion bill to bolster social spending and fight climate change.

Biden, a former senator who is deeply familiar with how the legislative process works, told his caucus on Friday that they could delay a vote on the smaller bill and sharply scale back the larger one to around $2 trillion.

Meanwhile the president said on Saturday he hoped Republicans would not use a filibuster in the Senate to block efforts to raise the debt ceiling.

“That would be totally unconscionable,” he said.

The Treasury Department estimates that it has until about Oct. 18 for the government’s $28.4 trillion borrowing limit to be raised by Congress or risk a debt default with potentially catastrophic economic consequences.
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