Treasury Secretary nominee Janet Yellen urged senators Tuesday to "act big" on economic relief and warned that the pandemic-ravaged economy would suffer from deep, long-term damage without sufficient federal aid.
During her confirmation hearing before the Senate Finance Committee, Yellen said it was crucial to approve more support for struggling households and small businesses despite the steep financial cost of fighting the dual health and economic crises.
Yellen, a Democrat, championed a $1.9 trillion coronavirus response and economic aid bill proposed by President-elect Biden as a necessary follow-up to more than $3 trillion in relief already approved by the federal government. She argued that while the price tag might be too high for fiscal hawks to stomach, the cost of inaction would be much greater for the U.S. economy.
"Neither the president-elect, nor I, propose this relief package without an appreciation for the country's debt burden," Yellen said. "But right now, with interest rates at historic lows, 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 have been struggling for a very long time."
https://www.msn.com/en-us/news/politics/yellen-champions-big-spending-at-confirmation-hearing/ar-BB1cTFtl?li=BBnbfcQ&ocid=DELLDHP
Janet Yellen, Treasury Secretary nominee, outlines priorities under Biden administration
Former Federal Reserve Chair Janet Yellen told Congress Tuesday that if confirmed as the next Treasury Secretary, she would prioritize a “big” fiscal package to bridge the U.S. economy to a post-pandemic world.
But Yellen, who needs a simple majority in the full Senate to earn confirmation, walked a fine line in promising COVID-19 relief while also paying mind to the national debt.
“Neither the President-elect, nor I, propose this relief package without an appreciation for the country’s debt burden,” Yellen told the Senate Finance Committee in her nomination hearing Tuesday. “But right now, with interest rates at historic lows, the smartest thing we can do is act big.”
Acting “big” would imply the $1.9 trillion relief package floated by the incoming Biden administration last week, which would include additional $1,400 stimulus checks and an extra $400 per week unemployment insurance benefit.
https://finance.yahoo.com/news/treasury-nominee-janet-yellen-outlines-priorities-under-biden-administration-185327249.html
