YELLEN DAY — Finance Minister CHRYSTIA FREELAND starts her week by welcoming U.S. Treasury Secretary JANET YELLEN to the Royal Ontario Museum in Toronto. Their latest confab launches just before 10 a.m. Presumably they won't spend too much time chatting about the still-controversial Michael Lee-Chin Crystal that forms the museum's Bloor Street entrance. (But here's a talking point for Yellen. DANIEL LIBESKIND, the architect of that particular glass-walled talker, also drew up the master plan for the World Trade Center site across the East River from her hometown of Brooklyn.) — The state of play: Yellen on Sunday was on ABC's This Week, where she told GEORGE STEPHANOPOULOS that a slumping economy doesn't necessarily mean the dreaded r-word is on the horizon. "I expect the economy to slow," she said. "It's been growing at a very rapid rate, as the economy, as the labor market, has recovered and we have reached full employment. It's natural now that we expect a transition to steady and stable growth, but I don't think a recession is at all inevitable." Yellen also called inflation "unacceptably high." Earlier this month, Yellen admitted she was "wrong" to downplay the trend that economists once insisted was transitory. — Flight plan: When Freeland pitched her own cost-of-living plan last week, the major speech — which, we'll note, wasn't much of a newsmaker — launched a Summer of Affordability for the minister. Recall her own view of ongoing uncertainty: "We have been through two years of remarkable turbulence. Our challenge now is to land the plane. A soft landing is not guaranteed. But, fortunately for us, there is no country in the world better placed than Canada to achieve one." — On gas prices: Stephanopoulos quizzed Yellen on the notion of a federal gas tax holiday, an idea floated by the Tories north of the border. The treasury secretary appeared open to the idea. "President Biden wants to do anything he possibly can to help consumers," she said. "Gas prices have risen a great deal, and it's clearly burdening households, so he stands ready to work with Congress, and that's an idea that certainly worth considering." — What's on the agenda: Freeland will host a bilat with Yellen at 10 and a "working lunch" at 11:30 (on the menu: poutine). They'll shift a few blocks to U of T's Rotman School of Management for a 1 p.m. armchair discussion with Canada 2020. The topic of the Rotman convo, which will be moderated by BEATA CARANCI , TD's chief economist and senior vice-president: "How Canada and the United States can work together to create good jobs, make life more affordable, and build economies where nobody gets left behind." Background reading: Caranci recently posted a presentation she describes as "30 minutes of eco-geek." — The perfunctory tour: Freeland and Yellen will head 'round Queen's Park to the headquarters of Evoco, a biotech company that "uses plant-based materials to replace petroleum products and reduce carbon emissions." — The presser: That's scheduled for 3:30 p.m. at the MaRS Discovery District. — The last stop: That'd be a "working dinner" at 8:30. They'll sup down the street from Freeland's Toronto home. Watch for full coverage of all of this from POLITICO's ZI-ANN LUM in Toronto and ANDY BLATCHFORD. NORAD DAY — Defense Minister ANITA ANAND starts the week at CFB Trenton for a "major announcement" at 11 a.m. on the modernization of continental defense capabilities. She'll be joined by Gen. WAYNE EYRE, the chief of the defense staff, and Lieut.-Gen. ALAIN PELLETIER, NORAD's deputy commander. — The backstory: Less than two weeks ago, Anand and Prime Minister JUSTIN TRUDEAU were at NORAD HQ in Colorado with U.S. Defense Secretary LLOYD AUSTIN. The PM received classified briefings on "evolving threats posed by new technologies and recent geopolitical developments." He also got up to speed on "priorities for the development of NORAD's capabilities and the future of continental defense." Pelletier was in the room, along with American NORAD commander Gen. GLEN D. VANHERCK. Anand also met Austin at the Pentagon in late April to talk NORAD. — More backstory: The minister's staff pointed Playbook in the direction of two documents: an August 2021 joint statement on NORAD modernization and Anand's speech to a CGAI Conference in May. Both focused on the same priorities: tracking new conventional threats, modernizing command and control systems; increasing capabilities to deter and defeat threats; and investing more in R&D. Behind the jargon, big-money projects lie in wait. Canada will need to contribute to the replacement of the aging North Warning System, a Cold War-era surveillance network that dates to 1988. In May, Anand committed to "significantly investing" in NORAD infrastructure. — Money, money, money: Budget 2021 committed C$163.4 million over five years to NORAD modernization. Freeland's most recent budget tossed in C$6.1 billion in new defense spending — a portion of which will find its way to NORAD priorities. — What's coming: Some specifics, perhaps? A year of statements, speeches and budgets set up … something . At her CGAI talk, Anand didn't give much away: "In the short-term, we will have more details to share on our next steps." Over to you, minister.
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