US Treasury Secretary Janet Yellen and Fed Chair Jerome Powell have warned senators that the Covid-19 Delta variant is slowing the US economic recovery despite its "unprecedented" reopening.
In prepared remarks to a Senate Banking Committee hearing, Ms Yellen said the recovery from the pandemic-induced recession remains "fragile but rapid."
"While our economy continues to expand and recapture a substantial share of the jobs lost during 2020, significant challenges from the Delta variant continue to suppress the speed of the recovery and present substantial barriers to a vibrant economy," Ms Yellen said.
Mr Powell added: "The Delta variant has led to a surge in cases, causing significant human suffering and slowing the economic recovery."
Employment growth noticeably slowed down in August as the unemployment rate hit 5.2 per cent. Caregiving needs and continuing fears of the coronavirus appear to be weighing down job gains, Mr Powell noted.
"This figure understates the shortfall in employment", he said, adding at the end of his opening remarks that the US economy remains a long way from achieving maximum employment.
An increase in consumer prices has been "greater and more enduring than anticipated", but Mr Powell remains confident inflation will eventually subside.
Containing the spread of the virus and getting more Americans fully vaccinated would help mitigate inflation and unemployment rates.
US Treasury to hit debt limit mid-October, Yellen warns
Ms Yellen also repeated that a debt default triggered by Congress' failure to lift the federal debt limit would impair the full faith and credit of the United States "and our country would likely face a financial crisis and economic recession."
Ms Yellen warned the Treasury Department will likely exhaust all of its “extraordinary measures” to avoid an unprecedented default on the government’s obligations by October 18.
In a letter to lawmakers, she said, “We now expect that Treasury is likely to exhaust its extraordinary measures if Congress has not acted to raise or suspend the debt limit by October 18. At that point, we expect Treasury would be left with very limited resources that would be depleted quickly.”
Yellen said it was uncertain whether Treasury could meet all of the nation’s commitments after that date.
She said she still hoped the debt limit could be raised on a bipartisan basis. US Senate Republicans blocked a debt limit and government funding measure late on Monday.
"Senators, the debt ceiling has been raised or suspended 78 times since 1960, almost always on a bipartisan basis," Ms Yellen said before the committee on Tuesday.
"My hope is that we can work together to do so again and to build a stronger American economy for future generations."
Mr Powell, who suggested the Federal Reserve could scale back its asset-purchasing programme by November, has also endorsed raising the debt ceiling.
If the US Congress does not address the debt limit, the US would default for the first time in its history.
It would be a "self-inflicted wound of enormous proportions, Ms Yellen said.
Dhadak
Director: Shashank Khaitan
Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana
Stars: 3
RESULTS
1.45pm: Maiden Dh75,000 1,200m
Winner: Lady Parma, Richard Mullen (jockey), Satish Seemar (trainer).
2.15pm: Maiden Dh75,000 1,200m
Winner: Tabernas, Connor Beasley, Ahmed bin Harmash.
2.45pm: Handicap Dh95,000 1,200m
Winner: Night Castle, Connor Beasley, Satish Seemar.
3.15pm: Handicap Dh120,000 1,400m
Winner: Mystique Moon, Sam Hitchcott, Doug Watson.
3.45pm: Handicap Dh80,000 1,400m
Winner: Mutawakked, Szczepan Mazur, Musabah Al Muhairi.
4.15pm: Handicap Dh90,000 1,800m
Winner: Tafaakhor, Sandro Paiva, Ali Rashid Al Raihe.
4.45pm: Handicap Dh80,000 1,950m
Winner: Cranesbill, Fabrice Veron, Erwan Charpy.
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
The years Ramadan fell in May
Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.
The specs: 2018 Renault Koleos
Price, base: From Dh77,900
Engine: 2.5L, in-line four-cylinder
Transmission: Continuously variable transmission
Power: 170hp @ 6,000rpm
Torque: 233Nm @ 4,000rpm
Fuel economy, combined: 8.3L / 100km
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
