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Janet YellenPresident-elect Joe Biden’s candidate for Secretary of the Treasury called for “big” action on the COVID-19 pandemic and economic crisis during his Senate confirmation hearing on Tuesday. The Senate held confirmation hearings Tuesday for Yellen and other key members of Cabinet of Mr. Biden.
“Economists don’t always agree, but I think there is a consensus now: without further action, we risk a longer, more painful recession now – and long-term scars in the economy later. “, argued Yellen.
Asked what would provide the best value for money in economic relief, Yellen replied: “The relief we give to those who need it most and to small businesses has the best chance of helping those who need it most. have been hit so badly by the pandemic and creating a lot of expense per dollar spent. “She said it” would create jobs throughout the economy. “
His call to action came just days after Mr Biden presented an FDR-style vision to bring the coronavirus under control and tackle the economic crisis that has put millions out of work since the start of the year last.
“Over the next few months, we’ll need more help to distribute the vaccine; to reopen schools; to help states keep firefighters and teachers on the job,” Yellen told Congress. “We will need more funding to ensure that unemployment insurance checks keep coming out and to help families who are at risk of going hungry or losing the roof over their heads.
Mr Biden’s $ 1.9 trillion US bailout includes provisions such as extending improved unemployment benefits through September and increasing those benefits from $ 300 per week to $ 400 per week, sending direct relief to families in the form of checks for $ 1,400 , the national vaccine distribution plan and a series of other relief measures. Yellen acknowledged the price of $ 1.9 trillion on Tuesday.
“Neither the president-elect nor I are proposing this back-up plan without an appreciation of the country’s debt burden,” Yellen said. “But right now, with interest rates at historically low levels, the smartest thing we can do is act big. In the long run, I believe the benefits will far outweigh the costs. , especially if we care about helping people who struggle for a very long time. “
GOP Senator Rob Portman of Ohio asked Yellen about the role of the Treasury Secretary in being the voice of “sanity” in the administration. She told him that in the short term she felt that “we can afford to do what it takes to get the economy back on its feet, to get us out of the pandemic”, and she referred to research in other countries suggesting that often “spending money tackling a weak economy ends up reducing the debt burden in the long run than not providing that support.”
Yellen said that “we have to make sure at the end of the day that the deficits we run, if we do, are consistent with fiscal sustainability,” but noted that “the world has changed.” Yellen predicted that interest rates would stay low for a long time, although she also said that higher interest rates are a risk that must be taken into account “in developing a sustainable and responsible policy” .
Yellen, who previously served as Chairman of the Federal Reserve from 2014 to 2018, said she believed the Secretary of the Treasury had a dual mission: to help Americans get through the pandemic and return to work and rebuild economy so that American workers can compete globally.
Yellen was one of five Biden candidates to testify before Senate committees on Tuesday. Secretary of State designate Tony blinking, Secretary of Defense appointed retired general Lloyd Austin, Designated Secretary of the Department of Homeland Security Alejandro mayorkas and director of the candidate for national intelligence April Haines also appeared before Senate lawmakers.
If confirmed, Yellen will be the first woman to serve as Secretary of the Treasury in the department’s more than 230 years of history. She was also the first woman to hold the post of Chairman of the Federal Reserve.
Adam Brewster contributed to this report.
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