US ECONOMICS

IRAN

U.S. Department of State. JUNE 18, 2019. Secretary of State Michael R. Pompeo Remarks to the Press. MICHAEL R. POMPEO, SECRETARY OF STATE. UNITED STATES CENTRAL COMMAND. TAMPA, FLORIDA

SECRETARY POMPEO: Good afternoon, everyone. Thank you all for joining me here today. I had a good evening and a really good morning – spent time getting briefed by General McKenzie and his team at CENTCOM and General Clarke and his team at SOCOM. The purpose of my visit was to come down here and make sure that the State Department and the Department of Defense were deeply coordinated across a whole broad range of issues. We certainly discussed the ongoing tension in the Gulf, but we talked about a much broader range of issues. If we’re to deliver at the State Department on the President’s diplomatic objectives, we have to be tightly woven with our military, and I appreciate General McKenzie, General Clarke, and their teams spending time with me and my team today to make sure we were doing just that.

We had extensive conversations about tactical, operational, and strategic levels of work between our two organizations to make sure that when we present options, alternatives, policy recommendations to President Trump, we’re doing so in a way that is coherent and consistent and leads the President to a fuller understanding of the challenges and opportunities connected to decisions that he makes. We certainly, as I said, spoke about the challenges in Iran. We talked about the CENTCOM decision that Secretary Shanahan[1] and the President approved to move a thousand more Americans into theater to make sure that we’re in the position to do the right thing, which is to continue to work to convince the Islamic of Iran[2] that we are serious and to deter them further aggression in the region.

It’s been our mission since the beginning of this administration to convince the Iranian regime not to move forward with their nuclear program and not to continue to engage in development of their missiles and all the other activities, the malign activities that they’ve been engaged in around the world. That’s why we put in place the pressure campaign that’s now been ongoing for a year and a couple months. It’s been very effective, and now we need to make sure that we continue to do that so that we ultimately get the opportunity to convince Iran that it’s not in their best interests to behave in this way.

We all have to remember this isn’t just two and a half years or five years; this is 40 years of Iranian activity that has led us to this point. And to re-establish deterrence is a challenge, but one that I know the Trump administration is up to. And we’re working hard each and every day, both in the State Department and the Department of Defense and all of the elements of the United States Government to achieve that.

And with that, I’m happy to take a couple questions.

MS ORTAGUS: Go ahead.

SECRETARY POMPEO: Yes, ma’am.

QUESTION: Are there any conversations, either directly or through third parties, with Iran to try and deconflict the situation in the Persian Gulf?

SECRETARY POMPEO: Almost certainly. President Trump had sent President Abe to take a message of his to the leadership in Iran. And you have to remember, these are messages for the leadership. I think the Iranian people are being woefully mis-served by that leadership. But yes, we’re engaged in – we have been engaged in many messages. Even this moment right here, communicating to Iran that we are there to deter aggression. President Trump does not want war, and we will continue to communicate that message, while doing the things that are necessary to protect American interests in the region.

QUESTION: Mr. Secretary, Japan and Germany have asked for additional proof –

QUESTION: (Off-mike.)

QUESTION: I’m sorry. Japan and Germany have asked for additional proof of the attack on the tankers. And you said Sunday that you were going to provide that. Have – when are we expected to see that?

SECRETARY POMPEO: Yeah, we’ll continue to provide additional information about those attacks. But we shouldn’t focus on just those two attacks. There – since the beginning of May, there are now over a half dozen different instances of Iranian attacks in the region – some thwarted, some not successfully thwarted and actually they had an impact. But I saw just as I walked in here Chancellor Merkel say that she thought there was strong evidence that Iran had engaged in this activity. We’ll continue to work with partners all around the world.

It’s worth reminding everyone here: You have China that depends enormously on energy transiting the Strait of Hormuz. You have South Korea, Indonesia, Japan, all of whom have an enormous interest in ensuring there’s freedom of navigation throughout this waterway. The United States is prepared to do its part, but every nation that has a deep interest in protecting that shipping lane so that energy can move around the world and support their economies needs to make sure they understand the real threat – the real threat to their interests in the region, and the real threat to their countries’ economies if we’re not successful in doing that.

QUESTION: Mr. Secretary, because of where this is occurring, it obviously falls within the operation – operating theater of U.S. Central – Special Operations Command and Central Command. What do you say to the families of the men and women who work within those commands about how they should prepare themselves for what may come over the next year or two years?

SECRETARY POMPEO: Look, the first thing I’d do is say thank you to them for their service to the nation. I know many of these young men and women. They are talented, capable, aggressive. They have put us in the place where we have this opportunity to deter Iran. And what I would – what I’d say to them is what I say to everyone who’s engaged in this kind of service: America is deeply appreciative. We are providing them with the resources they need to be successful, to continue to engage in the activities in a way that will deliver good outcomes, and to thank them for their willingness to take this ultimate risk that every service member faces.

I remind my diplomats all around the world they, too, face threats to them, to themselves and to their families. And when I get a chance to talk to those officers at the State Department, those diplomats, I tell the same thing I’d like to share with the families that are here at CENTCOM and at SOCOM: I thank them for their amazing professionalism, work, and their willingness to serve America at these challenging times.

QUESTION: Mr. Secretary —

QUESTION: Mr. Secretary, you’ve said many times that the U.S. is not seeking war with Iran. But President Trump said this week that he would consider going to war over Iran obtaining nuclear weapons. Is that something that was discussed here today at CENTCOM? And can you give us any more details as to the different kinds – when we saw you on Sunday, you said military options were, of course, something that was being considered. Can you give us any more details about those discussions?

SECRETARY POMPEO: Look, one of the purposes of my visit today was to make sure that we were coordinated. The responsibility for diplomacy achieving the strategic outcomes that President Trump has sent forth falls on all of us, but the State Department has the first oar in the water on that. But we can’t do that without making sure that we have the capability to respond if Iran makes a bad decision, if it makes a decision to go after an American or an American interest or to continue to proliferate its nuclear weapons program.

And so we talked about a broad range of issues here today across all of that spectrum. I know that the soldiers, sailors, and airmen and Marines inside of CENTCOM are ready to respond to any threat that the Islamic of Iran[3] should present to the United States. And we talked about each of those and how to make sure that we were in sync and how we would prepare those options for the President of the United States.

QUESTION: Mr. Secretary, what’s the advantage of coming here to Tampa to talk with generals rather than talk with generals at the Pentagon? And should your trip here be a message to Iran?

SECRETARY POMPEO: So I talk with generals at the Pentagon all the time, too, so these are not mutually exclusive options. But it was important for me to get here into the headquarters, where a lot of this work is doing – and make sure we didn’t have to send a whole bunch of folks up to meet me in Washington. I got a chance to meet with not only those two leaders, but their teams today, and they got a chance in turn to hear how the State Department is thinking about this problem set, how we’re delivering deterrence in the region and reinforce with them the strategic objectives of the United States of America. So it was important and valuable to me to get here so that I could talk to a broader range of leaders and hear at a more granular level all of the great work that they’ve been engaged in.

MS ORTAGUS: (Off-mike.)

SECRETARY POMPEO: Great. I’ll take one more.

QUESTION: Mr. Secretary, mass immigration arrests are supposed to happen next week. Anything to say about that?

SECRETARY POMPEO: Yeah. I don’t have anything to add to that.

MS ORTAGUS: (Off-mike.)

SECRETARY POMPEO: I’ll say only this. It is the case that in May we had over 140,000 illegal immigrants enter into this nation unlawfully. It is an important undertaking to ensure that we have sovereignty and security at our southern border. And so every action this administration is taking is designed to do just that. President Trump’s been unambiguous, very clear. We worked – I worked personally on an arrangement with Mexico now a week and a few days ago. I am confident that we will get that under control. And it is important; it’s important for American national security that we do, in fact, achieve that.

Thank you, all.

[1] Acting Secretary Shanahan

[2] Islamic Republic of Iran

[3] Islamic Republic of Iran

U.S. Department of State. JUNE 18, 2019. Under Secretary Hale’s Briefing to the Senate Republican Conference

The below is attributable to Spokesperson Morgan Ortagus:‎

During its June 18 policy lunch, Under Secretary Hale discussed Iranian threats in the Middle East with the Senate Republican Conference.  The Under Secretary briefed the Conference on the Administration’s economic and political pressure campaign against Iran’s destabilizing behavior, including our diplomatic engagement with partners around the world to protect freedom of international navigation. These efforts will help deter Iran from escalating its irresponsible and dangerous actions.

U.S. Department of State. JUNE 19, 2019. United States Special Representative for Iran and Senior Advisor to the Secretary Brian Hook Travels to the Middle East and Europe

United States Special Representative for Iran and Senior Advisor to the Secretary Brian Hook will leave for the Middle East on June 19. He will hold bilateral meetings in the Kingdom of Saudi Arabia, the United Arab Emirates, Kuwait, the Sultanate of Oman, and the Kingdom of Bahrain. Special Representative Hook will discuss Iran’s regional aggression, including its recent attacks on two oil tankers in the Gulf of Oman. He will also share additional U.S. intelligence on the range of active threats Iran currently poses to the region. The United States is committed to working with our partners in the region to safeguard freedom of navigation and deter Iranian threats to international trade and shipping.

Special Representative Hook will then travel to Europe for consultations with the E3 on June 27. He will meet in Paris, France, with counterparts from the United Kingdom, Germany, and France to discuss a range of issues concerning the Iranian regime.

U.S. Department of State. JUNE 19, 2019. Secretary of State Michael R. Pompeo With Ben Shapiro of The Ben Shapiro Show. INTERVIEW. MICHAEL R. POMPEO, SECRETARY OF STATE. WASHINGTON, DC

QUESTION: Secretary Pompeo, thanks for your time.

SECRETARY POMPEO: Ben, it’s great to be with you. And you’re right, it’s not a huge surprise.

QUESTION: Yeah, Secretary Pompeo, I want to talk about that for a minute here. So you came out several days ago, you suggested pretty quickly after the attack that Iran was behind the attack. It seemed obvious to anyone with a shred a knowledge about what happens in the Gulf of Oman that it was Iran. There were literally no other forces that could possibly be responsible for this, and yet, the media proclaims that you, the administration, the Intelligence Community, they lacked the credibility to speak on this particular issue. What did you make of that response?

SECRETARY POMPEO: Well, importantly, Ben, we had, at that point, certainly among government leaders, provided them with ample intelligence, to be very clear. I think there was ample public intelligence as well to see very clearly who this was. I mean, the pattern, the practice – we had been talking about this. Indeed, the Iranians had claimed this was exactly what they were going to do and then went and did it. So frankly, I think it’s people playing political games, trying to attack President Trump and his foreign policy. I think they, therefore, were doubting him because what’s their profession is, but unfortunately it has a real impact. It has a – when you see those stories written, when you see someone like Ben Rhodes go out and doubt it, when he in fact has to know but is protecting a policy of a bygone time – when Ben Rhodes does that, he puts American soldiers, sailors, Marine airmen at risk because it shows that America is not united and doesn’t stand behind its professionals who made this determination.

QUESTION: Yeah, for those who missed it, Ben Rhodes, who was a national security political advisor to President Obama, he suggested that the United States was quote, “isolated in trying to pin the blame on the Iranians.” It is somewhat rich to me that Ben Rhodes, who admitted openly to lying to the American people repeatedly about the Iran nuclear deal – claiming falsely that the Iranian regime was on the verge of moderation if only we signed a terrible Iranian nuclear deal, and then he went ahead and just admitted that that was all false and had been made up – that that guy is out there now claiming that this administration lacks credibility on Iran. It’s pretty astonishing.

SECRETARY POMPEO: And it’s unfortunate because it enhances risk. Ben, look, we knew early on. We’d seen plenty of information in the run up to this. We knew early on that not only the two ships that occurred on that day, but the four ships that had been attacked in a similar method while they were at harbor, we had high confidence that these were Iranian attacks and the pattern continued. And so now the task for us is to shape our policy moving forward, to regain deterrence to prevent Iran from denying freedom of navigation in the Persian Gulf, raising the price of crude oil, which is exactly their mission set.

QUESTION: Yes, I want to talk about that mission set in just a second. I do have to ask you one more question about the media coverage of this, because it truly has been one of the more egregious displays that I’ve seen particularly following foreign policy in recent history, not surprising given who the President is and who the media are. But the media have been hammering on this notion that President Trump is somehow responsible or the Trump administration is responsible for escalation regarding Iran. So The New York Times ran a piece in which they suggested that it’s very odd that the escalation seems to occur right around the time – not because of but right around the time that Iran was threatening ships in the Gulf of Oman, but it was really President Trump being so militant about the sanctions – that has led to all of this. How do you respond to accusations that it’s the United States that’s turned up the temperature in the Middle East?

SECRETARY POMPEO: Yeah, it’s just false. These are actions that Iran took. I’ve seen some of the “blame America first” crowd talking about this in that way. This has frankly been – for those who haven’t been around that long, this is 40 years of Iranian activity, this pattern and practice. And for too long there weren’t responses, America didn’t respond. We have allowed Iran to believe that they could take actions like this and there wouldn’t be a response, not only from America, but from all those who have a vested interest in denying Iran its capacity to threaten these shipping lanes. And so it’s – I regret it’s the case that some are blaming the administration for the escalation when we have spent all of our energy over these past weeks working to create a situation where deterrence was sufficient so the – this would not escalate and we wouldn’t end up in a war or with kinetic action between our two countries.

QUESTION: I’m speaking with Secretary of State Mike Pompeo. So, Secretary Pompeo, what exactly do you think the Iranian regime is attempting to achieve here? Because they have to know that if they go too far, they will no longer be there, right, and it is not in the interests of the Iranian regime to go to full-scale war with the United States. It’s not in anybody’s interests to go to full-scale war with the United States. What are they hoping to achieve with these sort of pinprick attacks on international shipping?

SECRETARY POMPEO: So President Trump has made clear that the deal that was struck by the previous administration, the nuclear deal, didn’t make sense because it provided a clear pathway for a nuclear weapon system in Iran. And so we’ve set forward a set of policies to try and prevent that. It was part – part of that was the economic pressure campaign that’s putting an enormous pressure on the Iranian leadership. They have fewer dollars to underwrite and pay for Hizballah, to threaten Israel. They have fewer dollars to threaten American soldiers throughout the region. All of those things – real pressure on the Iranian leadership. And so what I think they’re doing is they’re attempting to use these actions to convince the world that America should release that pressure, should allow Iran to have more money, more wealth, and so that they can get back to the kind of behavior that they’ve engaged in for 40 years and did so even while they were underneath this agreement with the United States of America.

QUESTION: It’s pretty obvious that the Iranian regime is obviously feeling the brunt of those sanctions. We’ve seen leaders of Hamas claim that they are running out of money. The Iranian regime itself is obviously under severe economic pressure. Its own people are deeply unhappy with the Iranian regime. It makes sense they’re trying to affect the international price of oil. At what point, Secretary Pompeo – what sort of options are on the table at this point to dissuade the Iranians from doing this? Obviously there’s the increased troop numbers in the region. At what point do we have to do something beyond that?

SECRETARY POMPEO: Well, look, we never get out in front of a decision the President may make about how to respond. Our task is to ensure that we’re clear about our objectives, what it is we’re asking Iran to do, the behavioral change we’re asking from Iran, so they can choose to do it – that is, they can make a commitment to do that and we could have a conversation with them about how to achieve that. But beyond that, we’re prepared to do the things to make sure we protect all American interests and to work to build out a coalition around the world who identifies Iran as what it is, the world’s largest state sponsor of terror, and demands that they change their behavior.

I hope the Iranian leadership will see that that’s the best course of action for them, and frankly, I hope the Iranian people will express this to their leaders too, that they’ll tell their leaders: “This isn’t what we want. We don’t want war with the United States. Frankly, we don’t want to be the world’s largest state sponsor of terror. We want to take care of our families, to grow our businesses, to make Iran a great country that’s part of the community of nations.” I hope the Iranian people understand that they need to communicate that to their leaders so that the leadership will change its ways.

QUESTION: Well, Secretary of State Mike Pompeo, thanks so much for your time. I really appreciate you providing some insight on the situation in Iran. Suffice it to say all of the exaggerated talk about this being a wag the dog scenario is a bunch of garbage, and I really appreciate you being out there dispelling some of the myths.

Thank you, Secretary.

SECRETARY POMPEO: Ben, thank you so much, sir. So long.

U.S. Department of State.

EU

U.S. Department of State. JUNE 18, 2019. U.S. Department of State. Secretary Pompeo’s Meeting With EU High Representative for Foreign Affairs and Security Policy and European Commission Vice President Federica Mogherini

The below is attributable to Spokesperson Morgan Ortagus:‎

Secretary Michael R. Pompeo met today with EU High Representative for Foreign and Security Policy and Vice President of the European Commission Federica Mogherini.  Secretary Pompeo and the High Representative discussed U.S.-EU relations and a number of common interests and shared challenges facing the United States and Europe, including European defense and security, Afghanistan, Cuba, Iran, Libya, Moldova, the western Balkans, Russia, Ukraine, and Venezuela.

AFRICA

DoC. USITC. June 18, 2019. Deputy Secretary Kelley and U.S. Government Officials Join the Corporate Council on Africa for Historic Anadarko Signing

MAPUTO, MOZAMBIQUE – On behalf of Secretary of Commerce Wilbur Ross, U.S. Deputy Secretary of Commerce Karen Dunn Kelley led a U.S. government delegation to witness the historic final investment decision signing between Anadarko Petroleum of Woodlands, Texas, and the Government of Mozambique. The investment of the Anadarko LNG terminal supports the largest U.S. sourced investment on the African continent in history at $20 billion.

“The Trump Administration is committed to increasing trade with African nations where all can reap the benefits of new investments and economic growth,” said Deputy Secretary of Commerce Karen Dunn Kelley. “American companies and products set the standard in the international market and the historic deal signing between Anadarko Petroleum and the Government of Mozambique reaffirms the goal of achieving long term economic development throughout the region.”

The U.S. government involvement and visit underscores the U.S. commitment to expanding trade, investment and commercial ties between Mozambique and the United States, and furthermore, promoting the strong bond between the United States and Sub-Saharan Africa.

DoC. USITC. June 19, 2019. Remarks by Deputy Secretary Karen Dunn Kelley at the Corporate Council on Africa’s U.S.-Africa Business Summit in Maputo, Mozambique

Good morning, and thank you, Florie, for your kind introduction. I’d also like to thank President Nyusi for hosting.

Your excellencies, honorable ministers, members of the diplomatic corps, distinguished guests, and ladies and gentleman.

It’s an absolute honor to be in Maputo, Mozambique on behalf of: the President of the United States and the U.S. Secretary of Commerce at the biennial “Corporate Council on Africa’s” U.S.-Africa Business Summit, which has now been held every two years since 1997. I’m also proud to continue the series of important visits to Africa by the Trump Administration and to join the ranks of: First Lady Melania Trump and Ivanka Trump in raising the profile of women in Africa.

Let me begin by expressing my deepest condolences to the people of Mozambique, Malawi, Zambia, and Zimbabwe for your recent losses from cyclones Kenneth and Idai (pronounced EE-DIE). As the U.S. Government and business community moves from assisting with disaster relief to playing a leadership role in the international recovery efforts, know that the thoughts and prayers of the American government and people are with you.

In 2017, the Secretary of Commerce had the honor of opening the U.S.-Africa Business Summit in Washington, D.C., where he gave the Administration’s first cabinet-level speech on U.S. trade with Africa. The Secretary highlighted Africa’s spectacular rise, noting the explosive economic growth, the rapid urbanization, and the massive expansion of Africa’s consumer class.

Two years later, Africa continues to RISE. Africa’s GDP growth forecast is projected at 4 percent this year, up from 3.5 percent in 2018, making Africa the fastest growing region in the world after Asia, according to the African Development Bank. In addition, the International Monetary Fund forecasts that, this year, 6 of the top 10 fastest-growing economies in the world will be in Africa. I’m confident that, in the next five years, Mozambique will be on that list.

In that spirit, yesterday, I had the privilege of experiencing the signing of the Final Investment Decision for a 20-billion-dollar investment, the largest in Africa’s history, by the U.S. company Anadarko. This is a transformational investment for Mozambique and for the African continent at-large.

When the Secretary spoke to you in 2017, he raised a critical question that decision makers in Africa, including many of you, will have to grapple with in the coming years: As these upward growth trends continue, with what types of partners do you want to collaborate? The U.S. government has sustained its commitment to the African continent, by continuing to serve as the world’s largest donor of foreign aid, providing over 9 billion dollars a year to support Sub-Saharan Africa.

When it comes to trade, however, there is room for great progress and opportunity. U.S. exports into Africa have decreased by 32 percent from their 2014 high. And we want to work with you to better understand how to reverse this trend. We know that American companies offer an unrivaled value proposition. Yet, we have lost ground to the increasingly-sophisticated, but too often opaque business practices of foreign competitors.

There are many reasons for the decline in U.S. trade. Within the United States, the U.S. Government’s export credit and other financing tools were sidelined or not optimized for current challenges. Many U.S. small and medium sized enterprises have been unaware of the U.S. Government’s export, investment, and risk-mitigation tools. And, the U.S. Government’s personnel in Africa too often worked in silos.

Obstacles for U.S. companies within Africa are also substantial. The President’s Advisory Council on Doing Business in Africa or PAC-DBIA noted in their 2018 report, “one of the main reasons U.S. firms are not winning projects in Africa is because they are not competing.” The PAC-DBIA Council also identified a number of constraints U.S. companies face in doing business on the continent, including structural issues such as, developing infrastructure, actual and perceived risks and lack of data to calculate risks; financial issues for example, underdeveloped capital markets, currency volatility and lack of access to U.S. dollars, limits on foreign banking and high costs of foreign and local borrowing; regulatory and rule of law issues complicated laws and regulations, lack of transparency, and trade barrier issues such as, costly and time-consuming delays in customs practices and local content requirements.

To address these challenges, this Administration has launched a series of important trade and investment initiatives between the United States and Africa: In October 2018, President Trump signed the “Better Utilization of Investments Leading to Development” or BUILD Act into law. This established the new U.S. International Development Finance Corporation (DFC), which doubled the cap on their financing opportunities; and strengthened the focus on new frontier markets, including those in Africa. Congress recently reinstated the U.S. Export-Import Bank (EXIM) Board quorum in May 2019. The Trump Administration is also expanding efforts in Africa to promote procurement practices focused on best value.

President Trump also signed legislation in April 2018 that supports efforts to maximize utilization of preferences under the African Growth and Opportunity Act or AGOA—to increase the number of African nations utilizing AGOA and provides the USG’s Millennium Challenge Corporation (MCC) increased flexibility.

In 2018, the Administration launched Power Africa 2.0 to further develop innovative ideas and enterprise-driven approaches to help expand power opportunities across the African continent.

The Office of the U.S. Trade Representative also announced in August 2018 its intent to negotiate a bilateral free trade agreement with an African partner that can serve as the basis for agreements with other African countries.

The United States Department of Commerce has also signed Memoranda of Understandings (MOU) with the Governments of Cȏte d’Ivoire, Ethiopia, Ghana, and Kenya to increase bilateral trade and investment.

Today, I’m very pleased to add another nation to that list, as we announce that the United States will be signing a Memorandum of Understanding with Mozambique. These MOUs are designed to collectively identify priority projects in key sectors. The United States will then share that information with U.S. companies to pursue the identified projects, as well as identify U.S. Government resources. The MOUs also establish a forum for the governments to address and resolve business climate issues.

The Secretary of Commerce and Under Secretary of the International Trade Administration led members of the PAC-DBIA on a historic, four-country fact-finding trip to Africa last summer. That trip led to the signing of nearly $2 billion dollars in deals and commercial engagements and the four previously mentioned commercial MOUs. The 2016-2018 term of the PAC-DBIA was an enormous success, thank you.

I am thrilled today to announce the new members of the 2019 to 2021 term.

The new members are executives from the following companies:

• UPS
• GE
• Abbott
• ABD Group
• Acrow Bridge
• Akola
• American Tower Corporation
• APR Energy
• Bechtel
• Caterpillar
• Cigna
• Citi
• Credence ID
• CrossBoundary Group
• Dow Chemical Company
• IBM
• John Deere
• Kosmos Energy
• Mastercard
• Pfizer
• Rendeavour Inc.
• Shea Yeleen
• Synnove Energy
• Varian Medical Systems
• Vermeer Corporation
• Visa

We are fortunate to have these companies’ engagement to help inform implementation of the Administration’s new initiative on Africa, Prosper Africa. We realized—with the help of PAC-DBIA—that we need a coordinated, whole-of-government approach to increase U.S.-Africa trade.

We know that the U.S. Government can and must do more to capitalize on the competitive advantage of U.S. companies and the entrepreneurial spirit of the African people.

For this reason, I am proud to roll out today, here in the presence of Heads of States and Honorable Ministers, and private sector representatives, additional details on the Administration’s new signature initiative, Prosper Africa. The goal of Prosper Africa is quite simple: We seek to substantially increase two-way trade and investment between the United States and Africa. Prosper Africa will accomplish this goal by focusing on three coordinated lines of effort. First, we will synchronize the capabilities and initiatives of the 15 plus U.S. Government agencies. We will ensure that our efforts to facilitate company deals are coordinated with technical assistance and capacity building and facilitated by timely policy engagement. This will provide an easy-to-use, one stop shop. Second, Prosper Africa will help facilitate transactions. We will modernize and coordinate the resources of U.S. agencies to help U.S. companies better identify commercial opportunities in Africa, taking advantage of the Commerce Department’s professionals in over 100 U.S. cities. Working in interagency deal teams, U.S. Government experts can offer support to assist companies in project preparation, such as feasibility studies, connect companies to potential U.S. Government financing and risk mitigation tools, and where applicable, help to expedite the deal through official U.S. Government advocacy. In concert, and as the third line of effort, Prosper Africa will: build African capacity to encourage private-sector led economic growth and work to remove trade barriers that inhibit U.S. companies from taking advantage of business opportunities in African markets, and often impeded the growth of African companies as well.

As you can clearly see, prosper Africa is not a traditional aid program, but rather an ambitious new program squarely focused on expanding trade and investment relationships between the U.S. and Africa.

For years, African leaders, have asked the world to view Africa as a continent ripe with opportunity. You have told the world that Africa’s future lies in free flows of investment and trade not exclusively in development and aid.

With Prosper Africa, I am proud to say that the United States of America has not only heard you, but we have listened and are taking action! You will have a chance today to hear more about Prosper Africa: Administrator Green from U.S. Agency for International Development will speak later today. There will be a panel discussion on Friday on U.S. Tools to Support U.S.-Africa Trade and Investment. And, lastly, Prosper Africa will be featured in the plenary hall from 10:30am to noon on Thursday and Friday.

In closing, I want to say thank you: For welcoming the American delegation to your nation, President Nyusi; for all of the hospitality that has been shown; and, most importantly, for the openness to a new era of America Africa business partnership through Prosper Africa.

On behalf of the Secretary of Commerce, and the American people, thank you for welcoming us to your beautiful country and we look forward to many years of partnership ahead!

INTERNATIONAL TRADE

DoC. USITC. June 19, 2019. U.S. Department of Commerce Finds Dumping and Countervailable Subsidization of Imports of Steel Propane Cylinders from China and Thailand

WASHINGTON – Today, the U.S. Department of Commerce announced the affirmative final determinations in the antidumping duty (AD) and countervailing duty (CVD) investigations of imports of steel propane cylinders from China and Thailand (AD only), determining that exporters from China and Thailand have sold steel propane cylinders at less than fair value in the United States at the following rates:

• China – 25.52 to 108.60 percent
• Thailand – 10.77 percent

In addition, Commerce found that exporters from China received countervailable subsidies at rates from 37.91 to 142.37 percent.

In 2017, imports of steel propane cylinders from China and Thailand were valued at an estimated $89.8 million and $14.1 million, respectively.

The petitioners are Worthington Industries (Columbus, OH) and Manchester Tank & Equipment Co. (Franklin, TN).

The strict enforcement of U.S. trade law is a primary focus of the Trump Administration. Since the beginning of the current Administration, Commerce has initiated 168 new antidumping and countervailing duty investigations – this is a 211 percent increase from the comparable period in the previous administration.

Antidumping and countervailing duty laws provide American businesses and workers with an internationally accepted mechanism to seek relief from the harmful effects of the unfair pricing of imports into the United States. Commerce currently maintains 484 antidumping and countervailing duty orders which provide relief to American companies and industries impacted by unfair trade.

The U.S. International Trade Commission (ITC) is currently scheduled to make its final injury determinations on or about August 1, 2019. If the ITC makes affirmative final injury determinations, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated and no orders will be issued.

The U.S. Department of Commerce’s Enforcement and Compliance unit within the International Trade Administration is responsible for vigorously enforcing U.S. trade law and does so through an impartial, transparent process that abides by international law and is based on factual evidence provided on the record.

Foreign companies that price their products in the U.S. market below the cost of production or below prices in their home markets are subject to antidumping duties. Companies that receive unfair subsidies from their governments, such as grants, loans, equity infusions, tax breaks, or production inputs, are subject to countervailing duties aimed at directly countering those subsidies.

Fact sheet: https://enforcement.trade.gov/download/factsheets/factsheet-multiple-steel-propane-cylinders-ad-cvd-final-061819.pdf

USMCA

THE WHITE HOUSE. CNBC. 06/19/2019. OPINION - POLITICS. US Chamber of Commerce executive: Why Approving USMCA is an urgent priority

Key Points

• The United States-Mexico-Canada Agreement looms over the congressional agenda this summer.
• Important talks between the administration and congressional Democrats over lingering concerns are ongoing, and these concerns should not be minimized.
• But USMCA will create certainty in the marketplace, boost economic growth and job creation and pave the way for future trade talks.

“The United States-Mexico-Canada Agreement looms over the congressional agenda this summer. In recent weeks, officials have rolled up their sleeves and begun to prepare the ground for a positive vote on this landmark trade agreement,” U.S. Chamber of Commerce Executive Vice President Myron Brilliant writes in CNBC. “Each day that passes without approving USMCA is a day that [its] benefits are deferred.”

The United States-Mexico-Canada Agreement looms over the congressional agenda this summer. In recent weeks, officials have rolled up their sleeves and begun to prepare the ground for a positive vote on this landmark trade agreement. Approval of USMCA is an urgent priority for the U.S. business and agriculture community.

While Washington wouldn’t be recognizable without partisan differences, the constructive engagement on USMCA between the administration and Congress has been noteworthy. Forward movement is also evident in the recent passage of landmark labor reform by Mexico’s Congress and news that legislatures in both Canada and Mexico are beginning consideration of the pact. In fact, Mexico’s Senate may vote as soon as next week.

Another critical step forward came on May 17, when the administration announced it was dropping its tariffs on steel and aluminum from Canada and Mexico. Ending those tariffs and the retaliatory duties levied by our North American neighbors has unleashed a new wave of congressional and business support for USMCA.

One by one, obstacles are being removed. Important talks between the administration and congressional Democrats over lingering concerns are ongoing, and these concerns should not be minimized. But it’s also true that USMCA approval has taken on a fierce urgency to create certainty in the marketplace, boost economic growth and job creation, and pave the way for future trade talks.

Certainty. An early vote for USMCA will provide U.S. businesses from every sector—from agriculture to manufacturing and services—the certainty that their exports to Canada and Mexico will enter those markets duty-free.

This certainty is invaluable because these two markets are invaluable to American business. U.S. trade with Canada and Mexico:

• Reached nearly $1.4 trillion last year, or $3.8 billion daily;
• Supports 12 million American jobs spread across every state in the union;
• Is vital for U.S. manufacturers, who export more made-in-America manufactured goods to Canada and Mexico than they do to the next 11 largest export markets combined;
• Accounts for nearly one-third of U.S. agricultural exports; and
• Powered growth in U.S. services exports from $27 billion in 1993 to $91 billion in 2017.

Certainty is what American job-creators require if they are to make brick-and-mortar investments and create more jobs for the long haul.

Growth. USMCA isn’t just about holding on to what you’ve got. USMCA will boost economic growth by improving the market access guaranteed for U.S. businesses.

For example, the agreement further opens the Canadian market to U.S. agricultural exports such as dairy products, poultry, and wine. U.S. farmers and ranchers have faced five years of declining commodity prices, so USMCA’s improved market access is more than welcome.

And make no mistake: These are growth markets. U.S. exports to Mexico and Canada have grown more over the past decade than sales to any other country. In each case, exports have expanded by more than $100 billion annually.

No other market comes close. In fact, Mexico and Canada accounted for about 40% of the growth in U.S. goods exports in dollar terms over the past decade.

In particular, USMCA promises growth for America’s small and midsized exporters. Canada and Mexico are the top two export destinations for U.S. small and medium-size enterprises, more than 120,000 of which sell their goods and services in our two North American neighbors. When an American small business starts exporting, it’s almost always to Canada or Mexico.

Modernization. USMCA also promises substantial new benefits by modernizing the rules for commerce in North America to reflect the realities of 21st century trade. Deferring enactment of the agreement means deferring these benefits.

To illustrate, when NAFTA was negotiated a quarter century ago, there was no e-commerce, so it’s no surprise the agreement did not address this booming sector. Here, USMCA’s digital trade chapter sets a new, high standard.

Similarly, USMCA modernizes protection for intellectual property. The cutting-edge medicines known as biologics are a case in point—the old NAFTA did not protect them for the simple reason that they had not yet been invented. All kinds of industries will benefit from modernizing trade rules in this way.

Precedent. USMCA’s path-breaking provisions will serve as a precedent for future trade agreements and provide benefits that will multiply in the years ahead—but only if Congress approves USMCA.

For example, USMCA prohibits “behind the border” barriers against U.S. exports. Too often, foreign governments deploy regulations or standards in an arbitrary way to block imports. USMCA halts this kind of protectionism in disguise.

USMCA also raises the bar with binding enforcement for all chapters. This includes labor and the environment, which were not subject to state-to-state dispute settlement under the NAFTA.

The U.S. is beginning trade negotiations with Japan, the EU, and potentially other countries. Approving USMCA will allow these breakthroughs to serve as a precedent that will shape these agreements.

The Trump administration negotiated a good deal with Canada and Mexico and it deserves to be approved without delay. Approving USMCA will provide job creators with the certainty they need to invest and hire, and the improved market access it promises will spur economic growth. It will modernize North American trade in ways that set a positive precedent for future trade talks.

Each day that passes without approving USMCA is a day that these benefits are deferred. Let’s build on our momentum and seize these benefits.

Myron Brilliant is executive vice president and head of international affairs at the U.S. Chamber of Commerce.

EMPLOYMENT

THE WHITE HOUSE. Salisbury Post. June 18, 2019. Opinion. Ivanka Trump, Wilbur Ross: President Redoubles Efforts to Ensure Good Jobs for All
By Ivanka Trump and Wilbur Ross

“On Tuesday, we were in Charlotte discussing workforce development with local leaders and executives as well as the new opportunities that this economy has brought to the state and region,” Advisor to the President Ivanka Trump and Commerce Secretary Wilbur Ross write in the Salisbury Post. “With a record 48 states registering unemployment rates below 5%, President Trump’s economic agenda is paying off.”

That said, many of the new jobs American companies are creating require highly skilled workers. “Today’s labor market challenges combined with rapid technological change call for a clear national workforce strategy,” Ms. Trump and Secretary Ross write. As of today, the President’s efforts have resulted in more than 250 companies pledging more than 9 million new opportunities to train and reskill American workers and students.

On Tuesday, we were in Charlotte discussing workforce development with local leaders and executives as well as the new opportunities that this economy has brought to the state and region.

Since the election, President Donald J. Trump’s economy has added almost six million jobs across the country. North Carolina has added more than 180,000, dropping from a 5.1% unemployment rate to a low of 3.7%. Wages are rising across the country and job openings have exceeded the number of unemployed Americans for 14 months straight. With the economy growing at a 3% rate and adding positive job growth each month, now is a great time for the American worker.

With a record 48 states registering unemployment rates below 5%, President Trump’s economic agenda is paying off for Americans across the country. There are more opportunities for job seekers, which benefit workers and cause companies to be creative to attract and develop talent through increasing training investments.

Moreover, today’s labor market challenges combined with rapid technological change call for a clear national workforce strategy. Government, business, education and labor must come together to ensure American workers are prepared for the increasingly high-skilled jobs that companies are creating.

Last year, President Trump created the interagency National Council for the American Worker, tasked with developing and implementing a long-overdue national workforce strategy.

President Trump also created the American Workforce Policy Advisory Board, an outstanding group of 25 CEOs, governors and recognized leaders from education, organized labor, industry associations and nonprofits. We are pleased that Charlotte’s Mayor, Vi Lyles is among the board members met Tuesday to discuss ways in which companies can educate and prepare local workers for the right jobs.

During our inaugural meeting in March, Mayor Lyles told President Trump that the board’s work “will provide key pathways, innovations, collaborations” to ensure that everyone in the greater Charlotte area can take advantage of the available economic opportunities.

The board is preparing recommendations to government, education and the private sector for promoting multiple pathways to good paying jobs, increasing data transparency to better match workers with jobs, modernizing recruitment and hiring practices and encouraging employer-led training investments. Employer-led training is an often-invisible cornerstone of our nation’s worker education and training system.

Companies invest heavily in their workforce. To highlight their diligent work, President Trump established the Pledge to America’s Workers.

So far, the effort has been a resounding success. Since the president’s announcement less than one year ago, more than 250 companies have signed the pledge and committed to over 9.5 million new opportunities for American students and workers.

North Carolinians have reaped the benefits of the Pledge to America’s Workers. North Carolina’s Honeywell pledged new opportunities for 20,400 workers; and Concrete Supply Co., also of North Carolina, committed to 1,200. Additionally, Siemens, Bank of America and Boeing, three companies with a significant presence in the Carolinas, have committed to creating more than 200,000 opportunities. Household names such as Walmart and FedEx have pledged over 1.5 million opportunities across the country.

We want all Americans to have the skills and opportunities to secure good paying jobs and successfully navigate the rapidly changing work environment. Solving today’s skills crisis involves joint efforts such as the American Workforce Policy Board that unites business, education, labor, and government.

The president has redoubled his efforts to ensure that hardworking men and women in the United States share in this economic success.

We are honored to join Mayor Lyles and others to support American workers. The time is now to redesign education and training for skilled jobs in our country and in Charlotte.

Ivanka Trump is the daughter of and an adviser to President Donald Trump. Wilbur Ross is secretary of Commerce.

U.S. Department of Commerce. June 18, 2019. Remarks by U.S. Commerce Secretary Wilbur L. Ross at the American Workforce Policy Advisory Board with Ivanka Trump in Charlotte, North Carolina
By Wilbur Ross

Thank you, Ivanka, for that kind introduction. And welcome everyone, to Charlotte. Thank you, Mayor Lyles, for hosting us today, and Barbara Humpton, for the tour of the Siemens USA facility this morning. I was even more impressed than I had anticipated. We should publicize widely the return on investment you achieve on your investment in training and your extremely high retention rate. Too many people think of training as an expense and not as a profit center, and fear loss of their newly trained workers. You have debunked both concerns.

It has been a busy week for me, having hosted the SelectUSA Investment Summit last week in Washington, and then traveling this past weekend to the Paris Air Show for the opening of the U.S. Pavilion. The economic dynamism at both events proves that the need for skilled workers will only grow.

Ivanka, thank you for joining me on stage last week to discuss workforce issues in front of more than 3,500 delegates attending the SelectUSA Investment Summit. During that three-day Summit, we met with executives from 71 countries either considering new investments, or increasing their existing capacity in the United States.

The shortage of workers is constricting many of their investment plans.

We were told by a number of foreign firms that they are having difficulty even hiring qualified truck drivers, despite paying up to $85,000 a year. Welders and coders were also especially hard to find, as were engineers.

We all know the statistics. With the lowest unemployment rate in 50 years, there are almost 7.5 million job openings right now, but only 5.9 million Americans are officially unemployed. To me, the key target is the 37.2 percent labor force non-participation rate. Less than a 2 percent reduction in it would eliminate the gap between jobs available and people seeking work. But though the millions of Americans on the sidelines are able and willing to work, but they lack the right skills.

In the three months since this Advisory Board met for the first time at the White House, you and your teams have examined four subject areas:

• Promoting multiple pathways to careers; 
• Increasing data transparency; 
• Modernizing candidate recruitment; 
• And encouraging more employer-led training.

Today, we will hear from the co-leads from each of these working groups on your priorities and potential recommendations.

Then, we will explore the interconnections of your work so far, and our next steps.

Finally, we will chart a path to receiving recommendations and, most importantly, implementing them.

Again, thank you for traveling to be here with the full Board, and I look forward to today’s discussion.

LEADERSHIP
Wilbur Ross

RUSSIA - NORTH KOREA

U.S. Department of the Treasury. 06/19/2019. Treasury Designates Russian Financial Institution Supporting North Korean Sanctions Evasion

WASHINGTON – The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced the designation of a Russian entity that has assisted North Korea in evading sanctions to access the international financial system.  Today’s action targets Russian-registered Russian Financial Society pursuant to Executive Order (E.O.) 13382 for having provided, or attempted to provide, financial, material, technological, or other support for, or goods or services in support of, U.S.-designated Dandong Zhongsheng Industry & Trade Co. Ltd (Dandong Zhongsheng), an entity that is owned and controlled by, directly or indirectly, U.S.- and United Nations (UN)-designated Foreign Trade Bank (FTB), North Korea’s primary foreign exchange bank.

“Treasury continues to enforce existing U.S. and UN sanctions against individuals and entities in Russia and elsewhere who facilitate illicit trade with North Korea.  Those who attempt to circumvent our authorities to provide the DPRK with access to international financial markets expose themselves to significant sanctions risk,” said Under Secretary for Terrorism and Financial Intelligence Sigal Mandelker.

Russian Financial Society began to provide financial services to North Korea immediately upon attaining their non-banking credit organization license, which allows Russian Financial Society to transact in multiple foreign currencies.  Russian Financial Society provided bank accounts for OFAC-designated Dandong Zhongsheng and to a North Korean chief representative of Korea Zinc Industrial Group, which was also designated for operating in the mining industry in the North Korean economy and for having sold, supplied, or transferred zinc from North Korea, where revenue or goods received may benefit the Government of North Korea.

Since at least 2017 and continuing through 2018, Russian Financial Society has opened multiple bank accounts for Dandong Zhongsheng.  These actions have enabled North Korea to circumvent U.S. and UN sanctions to gain access to the global financial system in order to generate revenue for the Kim regime’s nuclear program.

Dandong Zhongsheng was designated by the United States for being owned or controlled by, directly or indirectly, FTB, an entity whose property and interests are blocked pursuant to E.O. 13382.  Han Jang Su, FTB’s chief representative in Moscow, played a key part in acquiring banking services from Russian Financial Society.  Han Jang Su was designated by the United States on March 31, 2017, for acting for or on behalf of, directly or indirectly, FTB.  Both Han Jang Su and FTB have also been designated by the UN Security Council Committee pursuant to Resolution 1718 (2006).

Russian Financial Society is the latest Russian financial institution sanctioned by OFAC for providing financial services to North Korea.  In August 2018, OFAC designated Russian-registered Agrosoyuz Commercial Bank for knowingly conducting or facilitating a significant transaction on behalf of Han Jang Su.

As a result of today’s action, all property and interests in property of this target that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC.  OFAC’s regulations generally prohibit all dealings by U.S. persons or within the United States (including transactions transiting the United States) that involve any property or interests in property of blocked or designated persons.

Non-proliferation Designation. ​OFFICE OF ​FOREIGN ASSETS CONTROL. Specially Designated Nationals List Update

The following entity has been added to OFAC's SDN List:

• LIMITED LIABILITY COMPANY NON-BANK CREDIT ORGANIZATION RUSSIAN FINANCIAL SOCIETY (Cyrillic: ОϬЩЕСТВО С ОГРАНИЧЕННОЙ ОТВЕТСТВЕННОСТЬЮ НЕБАНКОВСКАЯ КРЕДИТНАЯ ОРГАНИЗАЦИЯ РУССКОЕ ФИНАНСОВОЕ ОБЩЕСТВО) (a.k.a. LLC NCO RUSSIAN FINANCIAL SOCIETY (Cyrillic: НКО РУССКОЕ ФИНАНСОВОЕ ОБЩЕСТВО ООО)), house 9/26, building 1, Shchipok street, Moscow 115054, Russia; Secondary sanctions risk: North Korea Sanctions Regulations, sections 510.201 and 510.210; Tax ID No. 7744002860 (Russia); alt. Tax ID No. 770501001 (Russia); Registration Number 1027744004903 (Russia) [NPWMD].

MEDAL OF FREEDOM

THE WHITE HOUSE. June 19, 2019. Ronald Reagan’s famed economist, Art Laffer, receives Medal of Freedom from President Trump

In 1974, America’s confidence was rattled. Two million Americans joined the unemployment lines that year alone, while inflation soared to a stunning 11 percent. The consensus in Washington—on both sides of the aisle—was that raising taxes and growing government could help our country crawl its way to prosperity.

A young economist named Dr. Arthur Laffer challenged that status quo—and in doing so sparked an economic revolution that changed history.

Known as the “Father of Supply-Side Economics,” Dr. Laffer’s work has brought millions out of poverty and on track toward a better life. Today, President Donald J. Trump recognized that legacy by presenting Dr. Laffer with America’s highest civilian honor.

Forty-five years ago, at a now-legendary dinner with Ford White House officials Donald Rumsfeld and Dick Cheney, Dr. Laffer pulled out his napkin and drew a small graph. With the now-famous “Laffer Curve,” he illustrated how when tax rates creep too high, people stop spending and investing—leading to less growth and, paradoxically, lower tax revenues. On the other hand, at a certain point on the curve, lower tax rates help spur investment, economic growth, and even government tax receipts.

Seem obvious? It is today—for most conservatives, at least. But in 1974, the “Laffer Curve” was economic heresy. Prominent leaders and academics dismissed it out of hand as “insanity” and “completely off the wall.”

Dr. Laffer would go on to prove them all wrong.

The Reagan Revolution, beginning in 1980, would see Dr. Laffer’s ideas take center stage as he helped shape President Ronald Reagan’s low-tax, pro-growth working-class agenda. He played vital roles in both the 1981 and 1986 tax cut laws, which ultimately chopped the top marginal rate for individuals from 70 percent to 28 percent.

The rest, as we know, is history. After years of dreaded “stagflation,” the U.S. economy skyrocketed. More than 12 million new jobs were created. Inflation collapsed. GDP soared by nearly 30 percent.

Since the 1980s, more than 30 countries have adopted similar tax cuts and reforms. As a result, Dr. Laffer’s policies have helped lift nearly a billion people out of poverty.

Not a bad legacy to start with a sketch on a napkin.

ECONOMY

FED. June 19, 2019. Federal Reserve issues FOMC statement

Information received since the Federal Open Market Committee met in May indicates that the labor market remains strong and that economic activity is rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although growth of household spending appears to have picked up from earlier in the year, indicators of business fixed investment have been soft. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation have declined; survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective as the most likely outcomes, but uncertainties about this outlook have increased. In light of these uncertainties and muted inflation pressures, the Committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Charles L. Evans; Esther L. George; Randal K. Quarles; and Eric S. Rosengren. Voting against the action was James Bullard, who preferred at this meeting to lower the target range for the federal funds rate by 25 basis points.

Implementation Note issued June 19, 2019. Decisions Regarding Monetary Policy Implementation

The Federal Reserve has made the following decisions to implement the monetary policy stance announced by the Federal Open Market Committee in its statement on June 19, 2019:

• The Board of Governors of the Federal Reserve System voted unanimously to maintain the interest rate paid on required and excess reserve balances at 2.35 percent, effective June 20, 2019.

• As part of its policy decision, the Federal Open Market Committee voted to authorize and direct the Open Market Desk at the Federal Reserve Bank of New York, until instructed otherwise, to execute transactions in the System Open Market Account in accordance with the following domestic policy directive:

"Effective June 20, 2019, the Federal Open Market Committee directs the Desk to undertake open market operations as necessary to maintain the federal funds rate in a target range of 2-1/4 to 2-1/2 percent, including overnight reverse repurchase operations (and reverse repurchase operations with maturities of more than one day when necessary to accommodate weekend, holiday, or similar trading conventions) at an offering rate of 2.25 percent, in amounts limited only by the value of Treasury securities held outright in the System Open Market Account that are available for such operations and by a per-counterparty limit of $30 billion per day.

The Committee directs the Desk to continue rolling over at auction the amount of principal payments from the Federal Reserve's holdings of Treasury securities maturing during each calendar month that exceeds $15 billion, and to continue reinvesting in agency mortgage-backed securities the amount of principal payments from the Federal Reserve's holdings of agency debt and agency mortgage-backed securities received during each calendar month that exceeds $20 billion. Small deviations from these amounts for operational reasons are acceptable.

The Committee also directs the Desk to engage in dollar roll and coupon swap transactions as necessary to facilitate settlement of the Federal Reserve's agency mortgage-backed securities transactions."

• In a related action, the Board of Governors of the Federal Reserve System voted unanimously to approve the establishment of the primary credit rate at the existing level of 3.00 percent.

This information will be updated as appropriate to reflect decisions of the Federal Open Market Committee or the Board of Governors regarding details of the Federal Reserve's operational tools and approach used to implement monetary policy.

Federal Reserve Board and Federal Open Market Committee release economic projections from the June 18-19 FOMC meeting

The attached table and charts released on Wednesday summarize the economic projections and the target federal funds rate projections made by Federal Open Market Committee participants for the June 18-19 meeting.

The table will be incorporated into a summary of economic projections released with the minutes of the June 18-19 meeting. Summaries of economic projections are released quarterly.

Projections and Accessible Materials: https://www.federalreserve.gov/newsevents/pressreleases/monetary20190619b.htm

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ECONOMIA BRASILEIRA / BRAZIL ECONOMICS

INDÚSTRIA

FGV. IBRE. 19/06/19. Sondagens e Índices de Confiança. Prévia da Sondagem da Indústria. Confiança da Indústria deve recuar em junho

A prévia da Sondagem da Indústria de junho de 2019 sinaliza recuo de 1,4 ponto do Índice de Confiança da Indústria (ICI) em relação ao número final de maio.

O resultado negativo do índice neste mês seria determinado tanto pela piora na percepção dos empresários em relação à situação atual quanto pelas perspectivas futuras dos negócios. O Índice da Situação Atual (ISA) cairia 1,8 ponto, para 96,7 pontos, enquanto o Índice de Expectativas (IE) diminuiria 1,0 ponto, para 94,9 pontos.

O resultado preliminar de junho sinaliza queda de 0,1 ponto percentual do Nível de Utilização da Capacidade Instalada da Indústria (NUCI), para 75,2%.

DOCUMENTO: https://portalibre.fgv.br/navegacao-superior/noticias/noticias-1589.htm

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LGCJ.: