Janet YellenPresident-elect Joe Biden, the Treasury secretary, called for “big” action against the COVID-19 pandemic and economic crisis during his Senate confirmation hearing on Tuesday. On Tuesday, the Senate held confirmation hearings for Yellen and more key members of the Senate Mr. Biden’s office.
“Economists don’t always agree, but I think there’s consensus now: without further action, we run the risk of a longer and more painful recession now, and long-term scars on the economy,” Yellen argued. .
When asked what would provide the greatest “economic relief” in economic relief, Yellen replied, “The relief we provide to those most in need and small businesses have the best chance of providing relief to those who have been so affected by the pandemic and creating a huge expense per dollar spent. ” He said this would “create jobs throughout the economy”.
His call to action came just days after Mr Biden unveiled an FDR-style vision to control the coronavirus and tackle the economic crisis that has left millions out of work since the beginning of the year. past.
“Over the next few months, we will need more help distributing the vaccine; reopening schools; helping states keep firefighters and teachers at work,” Yellen told Congress. “We will need more funding to make sure unemployment insurance checks keep coming out; and to help families who are at risk of starvation or losing their roof.”
Mr. Biden’s $ 1.9 trillion US rescue plan includes provisions such as extending improved unemployment benefits through September and increasing those benefits from the current $ 300 a week to $ 400 a week, sending direct benefits to families in the form of $ 1,400 checks, the national distribution plan of vaccines and a number of other relief measures. Yellen acknowledged the $ 1.9 trillion price on Tuesday.
“Neither the president-elect nor I are proposing this relief package without appreciating the country’s debt burden,” Yellen said. “But right now, with interest rates at record lows, the smartest thing we can do is act a lot. In the long run, I think the benefits will far outweigh the costs, especially if we care about helping people who they’ve been fighting for a long time. “
GOP Sen. Rob Portman of Ohio asked Yellen about the role of the secretary of the treasury in being the voice of “fiscal sense” in the administration. She told him that in the short term she felt that “we can afford what it takes to get the economy back on track, to get us through the pandemic,” and noted that there were investigations in other countries that suggested often “spending money to deal with a weak economy ends up creating a lower debt burden in the long run than not providing that support.”
Yellen said “we need to make sure that the deficits we run are ultimately consistent with fiscal sustainability,” but noted that “the world has changed.” Yellen predicted that interest rates would remain low for a long time, although he also said higher interest rates are a risk that must be taken into account “to develop a sustainable and responsible policy. “.
Yellen, who previously served as president of the Federal Reserve from 2014 to 2018, said she believes the Secretary of the Treasury has a dual mission: to help Americans weather the pandemic and get back to work and also rebuild ‘economy so that American workers can compete globally.
Yellen was one of five Biden nominees to testify before Senate committees on Tuesday. Designated Secretary of State Tony Parpellejant, Secretary-General appointed retired general Lloyd Austin, Designated Secretary of the Department of Homeland Security Alejandro Mayorkas and appointed director of National Intelligence April Haines he also appeared before Senate legislators.
If confirmed, Yellen will be the first woman to serve as Secretary of the Treasury in the department’s more than 230-year history. Previously, she was also the first woman to serve as president of the Federal Reserve.
Adam Brewster contributed to this report.