Business

FDIC RELEASES ECONOMIC SCENARIOS FOR 2024 STRESS TESTING

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WASHINGTON — The Federal Deposit Insurance Corporation (FDIC) today released the hypothetical economic scenarios for use in the upcoming stress tests for covered institutions with total consolidated assets of more than $250 billion.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires certain financial companies, including certain state nonmember banks and state savings associations, to conduct stress tests. In 2018, Congress increased the size of what is considered a covered institution from $10 billion to $250 billion.

The supervisory scenarios include baseline and severely adverse scenarios. The baseline scenario is in line with a survey of private sector economic forecasters. The severely adverse scenario is not a forecast, rather, it is a hypothetical scenario designed to assess the strength and resilience of financial institutions. Each scenario includes 28 variables—such as gross domestic product, the unemployment rate, stock market prices, and interest rates—covering domestic and international economic activity.

The FDIC coordinated with the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency in developing and distributing these scenarios.

Readout of Secretary Raimondo’s Meeting with the U.S. Travel and Tourism Advisory Board

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This week, Secretary Gina M. Raimondo met with the U.S. Travel and Tourism Advisory Board (TTAB) to underscore the Biden-Harris Administration’s commitment to advancing the growth of the U.S. travel and tourism industry including through implementation of the 2022 National Travel and Tourism Strategy across the U.S. government.

Assistant Secretary of Commerce for Industry and Analysis Grant Harris provided updates on action taken by Commerce and agencies of the Tourism Policy Council to accelerate the recovery and growth of the travel and tourism industry, including by working to make travel and tourism communities more resilient, destinations more accessible for travelers with disabilities, and to support job growth across the country.

On behalf of the Secretary, Deputy Assistant Secretary for Travel and Tourism Alex Lasry charged the TTAB with developing additional recommendations in early 2024 to further inform the implementation of the National Travel and Tourism Strategy.

The TTAB is the private sector advisory body to the U.S. Secretary of Commerce on matters relating to the travel and tourism industry in the United States. Furthermore, the National Travel and Tourism Strategy was developed and is administered by the National Travel and Tourism Office, located within Commerce’s International Trade Administration.

Biden-Harris Administration and BAE Systems, Inc., Announce CHIPS Preliminary Terms to Support Critical U.S. National Security Project in Nashua, New Hampshire

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U.S. Department of Commerce Outlines Potential Funding of Approximately $35 Million in Support of U.S. Defense Capabilities, Including F-35 Fighter Jet Program

Today, the Biden-Harris Administration announced that the U.S. Department of Commerce and BAE Systems Electronic Systems, a business unit of BAE Systems, Inc., have signed a non-binding preliminary memorandum of terms (PMT) to provide approximately $35 million in federal incentives under the CHIPS and Science Act to support the modernization of the company’s Microelectronics Center, a mature-node production facility in Nashua, New Hampshire. The project will replace aging tools and quadruple the production of chips necessary for critical defense programs including the F-35 fighter jet program.

The Department’s PMT with BAE Systems, Inc., marks the beginning of the next phase of implementation of the CHIPS and Science Act, a key part of President Biden’s Investing in America agenda.

“We have been clear since day one that the CHIPS for America Program is about advancing our national security and strengthening domestic supply chains, all while creating good jobs supporting long-term U.S. economic growth. As national security becomes as much about the chips inside of our weapons systems as the weapons systems themselves, this first CHIPS announcement shows how central semiconductors are to our national defense,” said Secretary of Commerce Gina Raimondo. “Thanks to President Biden’s Investing in America agenda, we have reached preliminary terms to make a substantial investment in New Hampshire’s expanding defense industrial base, which will help make our country and supply chains more secure and bolster the economy of the Granite State.”

“This announcement delivers on President Biden’s commitment to restoring American leadership on semiconductors, advancing our national security, and creating good family-sustaining jobs here in New Hampshire and around the country,” said Director of the National Economic Council Lael Brainard.

“This announcement of the PMT with BAE Systems, Inc., demonstrates our vision for the CHIPS for America program to ensure that we have a robust production capacity for the chips vital to U.S. national security,” said Under Secretary of Commerce of Commerce for Standards and Technology Dr. Laurie E. Locascio.  “This is the first of many announcements that will enhance our nation’s manufacturing capacity and create new jobs and opportunities in communities across the country.”

“Microelectronics are at the heart of the technology and products we make for our defense and aerospace customers—from next-generation aircraft and satellites to military-grade GPS and secure communications,” said Tom Arseneault, president and CEO of BAE Systems, Inc. “This funding will help modernize our Microelectronics Center and fulfill the promise of the CHIPS and Science Act by increasing our capacity to serve national defense programs, growing our technical workforce, and helping to strengthen the nation’s onshore supply chain. This initiative is the result of a strong partnership with federal, state, and local government.”

As explained in the Department’s first Notice of Funding Opportunity, the Department may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a CHIPS incentives award, including the amount and form of the award. After the PMT is signed, the Department begins a comprehensive due diligence process on the proposed project and other information contained in the application. After satisfactory completion of the due diligence phase, the Department may enter into final award documents with the applicant. Terms of the final award documents are subject to negotiations with the applicant and may differ from the terms of the PMT.

President Biden signed the bipartisan CHIPS and Science Act into law in August 2022, which is a critical part of revitalizing American semiconductor manufacturing to create jobs, strengthen supply chains, protect national security, and advance U.S. competitiveness.

In a little more than a year since the CHIPS Act was signed into law, the Department has moved quickly to create the CHIPS Program Office and the CHIPS R&D Office and has built a team that represents decades of experience across industry and government. In February 2023, the Department released the first Notice of Funding Opportunity for commercial manufacturing facilities, and then opened it to include large supply chain projects. The Department also released a Notice of Funding Opportunity for smaller semiconductor supply chain projects and expects to launch the National Semiconductor Technology Center (NSTC) in the near future.

About CHIPS for America

The Department has received more than 550 statements of interest and nearly 150 pre-applications, full applications, and concept plans for CHIPS Incentives. The Department is continuing to conduct rigorous evaluation of applications to determine which projects will advance U.S. national economic security, attract more private capital, and deliver other economic benefits to the country.

CHIPS for America is part of President Biden’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted.

APEC 2023: Conversations Lead by Global CEOs, Presidents and Prime Ministers from Across the Asia-Pacific

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The APEC CEO Summit 2023 will welcome 1,000+ attendees and feature 30+ speakers including world leaders, global business executives, and thought leaders to discuss challenges and opportunities facing the world today. The Summit, which will take place November 14-16, 2023 at the Moscone Center West in San Francisco, will prioritize Creating Economic Opportunity for the people of the Asia-Pacific region.

This year marks 30 years since the inaugural APEC Leaders meeting in 1993, hosted by then U.S. President Bill Clinton in Seattle. The annual APEC CEO Summit was created shortly after to further prioritize public-private dialogue between APEC business and government leaders. 

The APEC CEO Summit 2023 will address issues that affect all communities in the region ranging from climate change and equitable growth, to global health, supply chains and the emergence of new groundbreaking technologies.

The APEC CEO Summit is the premier business forum for CEOs and senior executives of global/regional companies, and entrepreneurs of the Asia-Pacific region to discuss the issues facing the region and to build their networks and participate in influential meetings with the leaders of member economies. It is held in the APEC host economy just prior to the annual APEC Leaders’ Meeting. The APEC CEO Summit 2023 will take place in November 2023.

Asia-Pacific Economic Cooperation (APEC) is a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific. APEC’s 21 members aim to create greater prosperity for the people of the region by promoting balanced, inclusive, sustainable, innovative and secure growth and by accelerating economic integration in the region.

The 10th SelectUSA Investment Summit, Taking Place Next June in National Harbor, MD

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U.S. Secretary of Commerce Gina Raimondo announced today that registration is now open for SelectUSA’s 10thInvestment Summit to be held June 23 – 26, 2024, at the Gaylord National Resort & Convention Center in National Harbor, Maryland.

The SelectUSA Investment Summit is the highest-profile event dedicated to promoting foreign direct investment (FDI) in the United States, with a focus on the U.S. investment environment, industry trends, and creating business opportunities. Drawing more than 4,900 participants in 2023, the Investment Summit facilitates connections between investors, economic developers, and industry experts to seek opportunities available through U.S. investment. Attendees and speakers include senior government officials, C-Suite business executives, and industry leaders.

“This year we are excited to celebrate the 10th SelectUSA Investment Summit, marking a decade of work by the Commerce Department to provide a platform that encourages foreign direct investment and economic development across the country,” said U.S. Secretary of Commerce Gina Raimondo. “For 11 years now, the United States has ranked as the top destination for global companies to invest and the SelectUSA Investment Summit has been critical to this success. As we implement President Biden’s Investing in America Agenda, the Investment Summit is a key way we can continue to bolster foreign direct investment and new international business partnerships in the U.S.”

The 2024 SelectUSA Investment Summit will offer exciting opportunities for all attendees with programming that will include plenary and academy sessions on key topics in the Biden Administration’s Investing in America agenda, including advanced batteries, Internet for All and U.S. infrastructure, clean energy, critical minerals, healthcare and pharmaceuticals, and the CHIPS Act.  

Innovation and entrepreneurship will once again be at the forefront of the Investment Summit this year. The SelectUSA Tech program, which connects early-stage and startup technology companies to prospects for advancement in the U.S. market, will allow participants to exhibit their products and services at branded booths with the opportunity to upload a product and service demo video, apply to pitch in front of a panel of judges, participate in workshops and Investment Academy sessions, and other engagement opportunities.

The Select Global Women in Tech (SGWIT) Mentorship Network, geared towards international women founders, entrepreneurs, and executives in the technology sector, will see its fourth iteration of programming at the SelectUSA Investment Summit. SGWIT participants will be matched in sessions with an experienced mentor to help them develop a market entry strategy, tailor their product and promotion for success in the U.S. market, gain access to an exclusive networking platform, and hear from successful global founders.


About the SelectUSA Investment Summit
The SelectUSA Investment Summit brings together more than 4,900 participants, including EDO representation from over 50 U.S. states and territories, more than 2,300 business investors representing over 80 international markets, and industry experts providing insight and advice on how to successfully invest in the United States.

The SelectUSA Investment Summit has directly helped generate more than $98 billion in new U.S. investment projects, supporting over 81,000 jobs across the United States and its territories.


The U.S. Department of Commerce-led SelectUSA program promotes and facilitates business investment into the United States by coordinating related federal government agencies to serve as a single point of contact for investor companies. SelectUSA assists U.S. economic development organizations to compete globally for investment by providing information, a platform for international marketing, and high-level advocacy. SelectUSA also helps business investors find the information they need to make decisions, connect to the right people at the local level, navigate the federal regulatory system, and find solutions to issues related to the federal government.

Readout of Secretary Raimondo’s Meeting with Minister of Commerce of China Wang Wentao

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U.S. Secretary of Commerce Gina Raimondo today met with Minister of Commerce of the People’s Republic of China Wang Wentao to advance U.S. commercial and strategic interests. The meeting was part of ongoing efforts to deliver on President Biden’s directive following his meeting with President Xi in November 2022 to deepen bilateral discussions. 

Secretary Raimondo emphasized the importance of ensuring open lines of communication between the United States and China and took concrete steps to deliver on that goal. Secretary Raimondo and Minister Wang agreed to: 

  • Establish a new commercial issues working group, a consultation mechanism involving U.S. and PRC government officials and private sector representatives to seek solutions on trade and investment issues and to advance U.S. commercial interests in China. They agreed that the working group will meet twice annually at the Vice Minister level, with the U.S. hosting the first meeting in early 2024.
  • Launch the export control enforcement information exchange, which will serve as a platform to reduce misunderstanding of U.S. national security policies. The first in-person meeting will occur at the Assistant Secretary level at the Ministry of Commerce in Beijing on Tuesday, August 29.
  • Convene subject matter experts from both sides to hold technical discussions regarding strengthening the protection of trade secrets and confidential business information during administrative licensing proceedings. 
  • Communicate regularly at the Secretary and Minister level about commercial and economic issues and to meet in-person at least once annually. 

Secretary Raimondo discussed opportunities to promote economic exchange where it aligns with U.S. interests and values. She underscored the importance of leveling the playing field for U.S. workers and businesses and ensuring the fair and transparent treatment of U.S. companies in China. Finally, Secretary Raimondo reinforced the Administration’s commitment to taking actions necessary to protect U.S. national security and reiterated the Administration’s “small yard, high fence” approach, underscoring that export controls are narrowly targeted at technologies that have clear national security or human rights impacts and are not about containing China’s economic growth.

U.S. Department of Commerce Secretary Gina Raimondo Releases 2023 National Export Strategy

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Today, Secretary of Commerce Gina Raimondo released the 2023 National Export Strategy(NES). This report to Congress establishes U.S. trade promotion priorities and a coordinated, whole-of-government framework to better equip American companies and workers to compete in global markets and grow through international trade. The NES highlights government programs and resources to assist U.S. businesses – including small and medium enterprises (SMEs), historically underrepresented businesses, and those new to exporting – to overcome barriers to trade and sell their goods and services globally.

“The Biden-Harris Administration’s generational investments in U.S. industry, innovation, workforce training, and place-based economic development are setting the stage for inclusive economic growth and boosting U.S. competitiveness on the global stage,” said Secretary Raimondo. “We are releasing the 2023 National Export Strategy amidst these historic investments, which outlines how we align the full force of the federal government to help U.S. businesses and workers compete and win in international markets—including small businesses exporting for the first time.”

The 2023 NES was released during the Biden-Harris Administration’s inaugural meeting of the President’s Export Council (PEC), a body that serves as the principal national advisory committee on international trade. The PEC is comprised of more than two dozen leaders from the private sector, labor, and academia who provide recommendations to the President on policies and programs that affect U.S. trade performance.

The 2023 NES contains export promotion actions and activities to increase and enhance market opportunities in several sectors, including:

1. Climate and clean technologies
2. Manufacturing
3. Travel and tourism
4. International education
5. Global infrastructure development
6. Agriculture, fish and forestry
7. Seafood industries

The 2023 NES was developed by the Trade Promotion Coordination Committee (TPCC), an interagency body established to provide a unifying framework to coordinate the export promotion and export financing activities of the U.S. government. The TPCC Secretariat is housed within the U.S. Department of Commerce’s International Trade Administration.

Federal Reserve Board releases results of annual bank stress test, which demonstrates that large banks are well positioned to weather a severe recession

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WASHINGTON D.C., June 28 – The Federal Reserve Board on Wednesday released the results of its annual bank stress test, which demonstrates that large banks are well positioned to weather a severe recession and continue to lend to households and businesses even during a severe recession.

“Today’s results confirm that the banking system remains strong and resilient,” Vice Chair for Supervision Michael S. Barr said. “At the same time, this stress test is only one way to measure that strength. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses.”

The Board’s stress test is one tool to help ensure that large banks can support the economy during economic downturns. The test evaluates the resilience of large banks by estimating their capital levels, losses, revenue and expenses under a single hypothetical recession and financial market shock, using banks’ data as of the end of last year.

All 23 banks tested remained above their minimum capital requirements during the hypothetical recession, despite total projected losses of $541 billion. Under stress, the aggregate common equity risk-based capital ratio—which provides a cushion against losses—is projected to decline by 2.3 percentage points to a minimum of 10.1 percent.

This year’s stress test includes a severe global recession with a 40 percent decline in commercial real estate prices, a substantial increase in office vacancies, and a 38 percent decline in house prices. The unemployment rate rises by 6.4 percentage points to a peak of 10 percent and economic output declines commensurately.

The test’s focus on commercial real estate shows that while large banks would experience heavy losses in the hypothetical scenario, they would still be able to continue lending. The banks in this year’s test hold roughly 20 percent of the office and downtown commercial real estate loans held by banks. The large projected decline in commercial real estate prices, combined with the substantial increase in office vacancies, contributes to projected loss rates on office properties that are roughly triple the levels reached during the 2008 financial crisis.

The $541 billion in total projected losses includes over $100 billion in losses from commercial real estate and residential mortgages, and $120 billion in credit card losses, both higher than the losses projected in last year’s test. The aggregate 2.3 percentage point decline in capital is slightly less than the 2.7 percentage point decline from last year’s test but is comparable to declines projected from the stress test in recent years. The disclosure document includes additional information about losses, including firm-specific results and figures.

For the first time, the Board conducted an exploratory market shock on the trading books of the largest banks, testing them against greater inflationary pressures and rising interest rates. This exploratory market shock will not contribute to banks’ capital requirements but was used to further understand the risks with their trading activities and to assess the potential for testing banks against multiple scenarios in the future. The results showed that the largest banks’ trading books were resilient to the rising rate environment tested.

The individual results from the stress test factor directly into a bank’s capital requirements, mandating each bank to hold enough capital to survive a severe recession and financial market shock. If a bank does not stay above its capital requirements, it is subject to automatic restrictions on capital distributions and discretionary bonus payments.

U.S.-UK Joint Statement on the U.S-UK Data Bridge

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Washington D.C., June 9 – U.S. Secretary of Commerce Gina Raimondo and UK Secretary of State for Science, Innovation, and Technology the Rt Hon Chloe Smith MP issued a joint statement yesterday on the announcement that both countries have committed in principle to establish a data bridge.

“Today, President Joseph R. Biden and Prime Minister Rishi Sunak announced that they have committed in principle to establish a data bridge allowing for the free flow of data between organizations in the United Kingdom and participating organizations in the United States.

“This announcement represents the UK’s intent to establish a data bridge for the UK Extension to the U.S.-EU Data Privacy Framework, subject to the UK’s data bridge assessment and further technical work being finalized, and dependent on the U.S. designation of the UK as a qualifying state under Executive Order 14086.

“Today’s announcement also reflects two years of progress and is a key step towards realizing both countries’ mutual ambition to establish a data bridge that would restore a robust and reliable mechanism for U.S.-UK data flows. 

“A U.S.-UK data bridge would uphold the rights of data subjects, facilitate responsible innovation, and provide individuals in both countries greater access to the services that suit them, whilst reducing the burdens on businesses and delivering better outcomes for people.

“We expect that the establishment of the data bridge will also further facilitate transfers to U.S. organizations that rely on other data transfer mechanisms under UK law.

“Reaching this significant milestone builds on the goal set at the inaugural meeting of the U.S.-UK Comprehensive Dialogue on Technology and Data, in January, to finalize a data bridge for U.S.-UK data flows in 2023 and is reflective of the importance of international collaboration to meet the global challenges and opportunities on data.

“We will continue working together to facilitate trusted cross-border data flows, including on multilateral initiatives, such as the Global Cross-Border Privacy Rules Forum, and through international fora, such as the Organization for Economic Cooperation and Development (OECD).”

APEC CEO Summit USA 2023 To Convene World Leaders and Business Executives to Discuss Creating Economic Opportunity

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The APEC CEO Summit USA 2023 will feature 30+ speakers from the public and private sectors, representing various industries, emerging voices, entrepreneurs, philanthropists, and world leaders from large and small economies. Speakers include senior executives from General Motors, Organon, Visa, Amazon, Boeing, Citi, Google, ExxonMobil, FedEx, Johnson & Johnson, Mastercard, Merck, Meta, Microsoft, Moody’s, Qualcomm, Uber, and UPS.

The United States will host the Asia-Pacific Economic Cooperation (APEC) CEO Summit convening more than 1,000 business executives and welcoming key world leaders from across the Asia-Pacific at the Moscone Center in San Francisco from November 15-16, 2023.

“As hosts of this year’s APEC CEO Summit, the U.S. will shape the agenda to prioritize the region’s most critical issues and work toward solutions to create a more inclusive and resilient Asia-Pacific,” said Monica Hardy Whaley, President of the National Center for APEC (NCAPEC), which is organizing the APEC CEO Summit USA 2023. “The world faces many challenges, and the business community is part of the solution. We have the leadership, ideas, and resources to help address key issues ranging from climate change and equitable growth, technology and digitization, to global health and supply chains.”

Under the theme “Creating Economic Opportunity” the APEC CEO Summit USA 2023 will focus on four driving topic areas:

  • Sustainability: Actionable climate-conscious solutions, and circular economy, biodiversity and resource efficiency
  • Inclusion: Stronger voices for small businesses, workers, and underrepresented communities
  • Resilience: Disaster readiness, strengthening supply chains, and preparing APEC economies for future challenges
  • Innovation: Technology, global healthcare, new ideas, and digital transformation across the region

Further details on the event and program agenda, including additional speakers, will be announced in the coming months.

Alongside APEC Leaders’ Week meetings and the Sustainable Future Forum taking place on the week of November 12-18, the APEC CEO Summit will reaffirm the importance of public-private dialogue in promoting global economic development.

APEC is the premier forum for public and private sector engagement on trade and economic opportunity in the fastest growing region in the world. The forum brings together 21 members, and offers a pathway to participation for large and small economies. This structure enables the APEC CEO Summit to meet the moment and create equitable opportunity for the wide range of workers, businesses, communities, and families throughout the region.