US Treasury Secretary Janet Yellen said again on Thursday that the Biden administration does not want to penalize its trading partners, especially in Europe, through its climate plan, despite concrete difficulties in drafting the rules, according to AFP.

Janet YellenPhoto: JUSTIN TALLIS / AFP / Profimedia

“The goal of Congress was to make sure we have secure supply chains and try to include our allies. So we’ll see what can be done,” Joe Biden’s Treasury Secretary assured during a trip to Fort Worth, Texas.

She referred to US subsidies given only to electric vehicles built in the United States, which “also raise concerns”.

“At the Treasury we are responsible for writing the rules for the various tax incentives. And we’re listening to a wide range of stakeholders to make sure we succeed,” Yellen said.

The European Union has been concerned for months about the effects of the IRA, US President Joe Biden’s $420 billion largely climate plan passed last summer that was the focus of French President Emmanuel Macron’s state visit to Washington Macron last week.

The subject was also discussed by the United States and the European Union on Monday near Washington at the Trade and Technology Council (TTC).

Ms. Yellen also insisted that the US economy can escape recession in 2023, despite still very high inflation (7.7% a year in October).

“I think we are on the right track to slow inflation and that recession can be avoided,” she said.

The persistence of this high inflation pushes the central bank (Fed) to tighten monetary conditions more strongly, before slowing economic activity and thus inflation, but at the risk of triggering a recession.

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