International

Lula, back in Brasilia, gets down to politics

Photo: Sergio Lima / AFP

| By AFP |

President-elect Luiz Inacio Lula da Silva met the leaders of both houses of Congress Wednesday, calling for “dialogue” in a divided Brazil as he sought support for his agenda after his inauguration on January 1.

The veteran leftist, who narrowly defeated far-right President Jair Bolsonaro in last month’s elections, is scrambling to secure support for his social spending plans ahead of his swearing-in, but is far short of a majority in Congress.

Making his return to the capital, Brasilia, the former president (2003-2010) kicked things off by meeting the speaker of the lower house, Arthur Lira, previously a Bolsonaro ally.

“The country needs dialogue and normality,” Lula posted on Twitter afterwards, along with a video of he and Lira shaking hands.

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He also met Senate president Rodrigo Pacheco.

Brazil was left torn by the October 30 runoff election, which brought a curtain down on four polarizing years under Bolsonaro — who lost by the slimmest margin in the country’s modern history.

Lula, 77, faces the task of healing the nation’s wounds — but also more pragmatic concerns for Latin America’s biggest economy.

That includes finding money for campaign promises such as a minimum-wage increase and continuing a beefed-up welfare program of 600 reais ($115) a month that was introduced by Bolsonaro but not funded in his 2023 budget.

Lula is racing to find the needed funding, with options such as passing a constitutional amendment allowing the government to break its spending cap next year.

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That would likely require support from Lira, who is from a loose coalition of parties known as the “Centrao,” a group known for striking alliances with whoever is in power — in exchange for government pork.

Vice President-elect Geraldo Alckmin, who is heading Lula’s transition team, said Tuesday the incoming administration was still evaluating other options, as well.

Lula also had meetings Wednesday with Supreme Court Chief Justice Rosa Weber and Superior Electoral Tribunal head Alexandre de Moraes.

Anticipation is meanwhile running high for his first cabinet appointments, especially from markets anxious over the key post of finance minister.

Alckmin named a four-member economic transition team Tuesday, with two market-friendly economists and two close to Lula’s Workers’ Party (PT).

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International

US panel backs Trump-themed coin amid controversy

The United States Department of the Treasury confirmed to AFP that the Commission of Fine Arts approved the design of a new collectible coin featuring Donald Trump, with members of the commission appointed by the current administration.

According to the proposal, the coin will feature an image of Trump standing with clenched fists over a desk on the obverse, while the reverse will display an eagle, a traditional symbol of the United States.

The sale price of the collectible has not yet been disclosed, although the United States Mint typically offers similar items for more than $1,000.

“There is no more iconic portrait for the front of these coins than that of our president Donald Trump,” U.S. Treasurer Brandon Beach said in a statement sent to AFP. He added that two additional coins — a $1 piece and a one-ounce gold coin — are also under consideration.

However, the Citizens Coinage Advisory Committee (CCAC), another body responsible for reviewing new coin proposals, declined to discuss the Trump design in late February.

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“Only nations governed by kings or dictators place the image of a sitting leader on their currency,” said Donald Scarinciat the time. “No country in the world has minted coins featuring a democratically elected leader during their term in office,” he added.

When contacted by AFP, the Treasury Department did not immediately respond to requests for further comment.

International

Fed’s Waller warns of rising inflation risks amid Middle East conflict

Christopher Waller, a governor at the Federal Reserve, said Friday that he is increasingly concerned about the inflationary impact of the ongoing conflict involving United States and Israel against Iran, particularly due to the prolonged closure of the Strait of Hormuz.

Waller, who had supported interest rate cuts over the past year amid concerns about the labor market, said he has shifted his stance in recent weeks due to rising inflation risks.

“Since the Strait of Hormuz was closed, it suggests this conflict could be much more prolonged and that oil prices will remain elevated for longer,” Waller said in an interview with CNBC.

“Therefore, this indicates that inflation is a greater concern than I had previously assessed,” he added.

Waller also backed the Federal Reserve’s decision earlier this week to keep interest rates unchanged, signaling a more cautious approach as global geopolitical tensions continue to affect economic outlooks.

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International

Brazil offers to mediate Colombia-Ecuador tensions, calls for restraint

The government of Brazil has offered to mediate in the ongoing tensions between Colombia and Ecuador, while calling on both nations to exercise restraint.

In a statement released Wednesday, Brazil’s Ministry of Foreign Affairs urged the parties involved to act with moderation and seek a peaceful resolution to the dispute.

“Brazil encourages all sides to act with moderation in order to find a peaceful solution to the controversy. It stands ready to support dialogue efforts aimed at preserving peace and security in the region,” the statement said.

Brazil also expressed “serious concern” over reports of deaths in the border area between Colombia and Ecuador, noting that the circumstances surrounding the incidents have not yet been clarified.

The diplomatic move comes amid rising tensions between the neighboring countries, increasing regional concern over stability and security along their shared border.