Yellen to tout Biden's economic agenda, Russia sanctions in Chicago

[March 02, 2022]  By David Lawder

CHICAGO (Reuters) - U.S. Treasury Secretary Janet Yellen travels to Chicago on Wednesday to amplify President Joe Biden's State of the Union messages on punishing Russia for its invasion of Ukraine and on his economic agenda, including investments in child care, education and clean energy.

U.S. Treasury Secretary Janet Yellen answers questions during the Senate Appropriations Subcommittee hearing to examine the FY22 budget request for the Treasury Department on Capitol Hill in Washington, DC, U.S., June 23, 2021. Greg Nash/Pool via REUTERS

The brief trip comes after Yellen spent several intensive days working with U.S. allies on crippling sanctions and asset freezes against Russia's central bank, major financial institutions, Russian President Vladimir Putin and the wealthy elites close to him, denying them access to the international financial system.

"We expect these efforts to have a debilitating impact on Russia's economy and hamstring the Russian government's ability to fund its invasion," Yellen said after a call on Tuesday with G7 counterparts and Ukrainian Finance Minister Sergii Marchenko.

Biden, in his speech on Tuesday night, closed U.S. airspace to Russian aircraft, adding: "When the history of this era is written, Putin's war in Ukraine will have left Russia weaker and the rest of the world stronger."

Yellen's actions on sanctions will resonate in the Chicago area's 54,000-strong Ukrainian-American community, one of the largest in the United States. She will meet with Illinois Governor JB Pritzker, who spoke on Sunday of his family's origins in Kyiv at a rally in support of Ukraine.

At the University of Illinois-Chicago's Innovation Center, Yellen also will tout Biden's efforts to persuade Congress to pass key parts of a domestic agenda highlighted in his speech, including new investments in manufacturing research and development.

He did not use the term "Build Back Better" in his speech, the moniker for a sweeping $2 trillion spending package that stalled at the end of last year amid opposition from moderate Democrats.

But he did say he was pursuing key elements, including universal pre-school, cutting child care costs for families and clean energy tax breaks, paid for by tax hikes on the wealthy and new, 15% minimum corporate taxes.

(Reporting by David Lawder)

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