Janet YellenPresident-elect Joe Biden’s nominee for Secretary of the Treasury called for “major” action against the COVID-19 pandemic and economic crisis during her Senate hearing on Tuesday. The Senate held confirmation hearings for Yellen and more key members on Tuesday Mr. Biden’s cabinet.
“Economists don’t always agree, but I think there is now a consensus: without further action, we now risk a longer, more painful recession – and later long-lasting scars from the economy,” argued Yellen.
When asked what would provide the greatest “bang for your buck” in economic aid, Yellen replied, “Help we provide to those in greatest need and small businesses have the best chance of providing both assistance to those in such need. badly hit by the pandemic and creating a lot of spending per dollar spent. ”She said this would“ create jobs across the economy ”.
Her call to action came just days after Mr. Biden set out an FDR-like vision to get the coronavirus under control and tackle the economic crisis that has left millions of people unemployed since the beginning of last year.
“In the coming months, we will need more help to distribute the vaccine, reopen schools, to help states keep firefighters and teachers in employment,” Yellen told Congress. “We need more funding to make sure that unemployment insurance checks are still going out; and to help families at risk of starvation or losing the roof over their heads.”
Mr. Biden’s US $ 1.9 trillion bailout includes amenities such as extending increased unemployment benefits through September and increasing those benefits from the current $ 300 a week to $ 400 a week, sending direct aid to families in the form of $ 1,400 checks, the National Vaccine Distribution Plan, and a range of other emergency measures. Yellen recognized the $ 1.9 trillion price tag on Tuesday.
“Neither the president-elect nor I are proposing this aid package without appreciating the country’s indebtedness,” said Yellen. “But right now, with interest rates hitting historic lows, the smartest thing we can do is act big. In the long run, I think the benefits far outweigh the costs, especially if we want to help people who are struggling for a very long time. . “
GOP Senator Rob Portman of Ohio asked Yellen about the role of the Treasury Secretary as the voice of “tax sanity” in the administration. She told him that in the short term she feels that ‘we can afford what it takes to get the economy back on its feet, to get us through the pandemic,’ and she pointed to research in other countries that suggested that ‘spending money to tackle a weak economy leads to lower debt in the long run than not providing that support. ”
Yellen said “we have to ultimately make sure that the deficits we have, if we do, are in line with fiscal sustainability,” but noted that “the world has changed.” Yellen predicted that interest rates would remain low for a long time, although she also said that higher interest rates are a risk to be considered “when designing sustainable and responsible policies.”
Yellen, who previously chaired the Federal Reserve from 2014 to 2018, stated that she believes the Treasury Secretary has a dual mission: to help Americans get through the pandemic and get back to work and the economy again. so that American workers can compete worldwide.
Yellen was one of five Biden nominees to testify before Senate committees on Tuesday. Candidate Secretary of State Tony blinks, Designated retired General of Defense Lloyd Austin, Candidate Secretary of the Department of Homeland Security Alejandro Mayorkas and candidate for the Director of 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-year history. She was also previously the first woman to serve as chair of the Federal Reserve.
Adam Brewster contributed to this report.