Oct 4, 2023 - Economy

Treasury pours cold water on $650 billion SDR plan

Felix Salmon

Illustration of the US Treasury building with an "X" chiseled into the stone. — Illustration: Shoshana Gordon/Axios

Treasury Secretary Janet Yellen is sticking to her guns, and the International Monetary Fund isn't going to create $650 billion in new money any time soon.

Why it matters: An attempt was made on Wednesday to resuscitate the plan, when U.S. civil society groups and 59 members of Congress wrote a letter to Yellen urging her to embrace it.

Between the lines: That trial balloon was swiftly shot down by Treasury, with a spokesperson telling Axios that Yellen's position has not changed since she last poured cold water on the idea in October 2022.

The bottom line: As world financial leaders prepare to journey to Marrakech, Morocco, for annual meetings of the IMF and World Bank, they should not hope for a windfall along the lines of what they received in 2021.

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Treasury pours cold water on $650 billion SDR plan

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