Wally Adeyemo, President Biden’s nominee for deputy Treasury Secretary, plans to emphasize the importance of rebuilding America’s alliances to combat China’s unfair trade practices and halt foreign interference in the country’s democratic institutions at his confirmation hearing on Tuesday, according to a copy of his prepared remarks, which were reviewed by The New York Times.
His remarks highlight the importance that the Biden administration is placing on multilateralism as it seeks to undo many of the economic policies put in place by former President Donald J. Trump.
Mr. Adeyemo will tell members of the Senate Finance Committee that Treasury Secretary Janet L. Yellen has asked him to focus on national security matters at the department. If confirmed, he will be a pivotal player in America’s economic diplomacy efforts.
“We must reclaim America’s credibility as a global leader, advocating for economic fairness and democratic values,” Mr. Adeyemo will say.
Mr. Adeyemo is expected to be introduced at the hearing by Senator Elizabeth Warren, the progressive Democrat from Massachusetts. Ms. Warren, who established the Consumer Financial Protection Bureau before joining the Senate, worked with Mr. Adeyemo, who served as her first chief of staff.
Mr. Adeyemo will discuss the nexus between economic and national security, arguing that “Made in America” policies will make the country more competitive around the world. If confirmed, he is expected to conduct a broad review of Treasury’s sanctions program, which the Trump administration used aggressively, but often haphazardly, against Iran, North Korea, Venezuela and other countries.
“Treasury’s tools must play a role in responding to authoritarian governments that seek to subvert our democratic institutions; combating unfair economic practices in China and elsewhere; and detecting and eliminating terrorist organizations that seek to do us harm,” Mr. Adeyemo, a former Obama administration official, will say.
Born in Nigeria, Mr. Adeyemo emigrated with his parents to the United States when he was a baby and settled in Southern California outside Los Angeles. At the hearing, he will also talk about his working-class upbringing and the need to ensure that low-income communities and communities of color, which have been hit hardest by the pandemic, receive relief.
Stocks on Wall Street fell on Monday, following European and Asian indexes lower. U.S. government bond yields continued to climb as investors anticipated faster economic growth and inflation.
Yields on 10-year Treasury notes rose as high as 1.37 percent, the highest in a year. The yield has risen each of the past three weeks, about 30 basis points so far this month.
The sharp rise in yields and inflation expectations in markets has led to a debate about whether the Federal Reserve will respond by pulling back some monetary stimulus, reducing the easy-money policies that have helped keep stock markets buoyant for much of the pandemic.
“Investors are increasingly confident of a ‘V’ shape global recovery, so much so that the emerging concern is not growth, but inflation,” analysts at ING Bank wrote. “Increasingly, parallels are being drawn to similar events in 2013,” they wrote, when traders panicked in a “taper tantrum” about the easing of asset purchases by the central bank, sending yields surging higher.
Fed policymakers have indicated they will look past a short-term rise in inflation and keep monetary policy loose. But not everyone is buying this message, especially as the Biden administration is pushing a $1.9 trillion economic relief package.
“The bond market continues to telegraph an increasingly confident message on the global economy and skepticism of Fed guidance,” analysts at JPMorgan Chase wrote in a note over the weekend.
The S&P 500 index fell 0.8 percent, in its fifth consecutive daily decline. The technology-heavy Nasdaq composite fell 2.5 percent.
European stock indexes also slipped, with the Stoxx Europe 600 down 0.4 percent.
Oil prices rose on Monday. Futures of West Texas Intermediate, the U.S. benchmark, climbed nearly 4 percent to over $61 a barrel.