Janet YellenNominated President-elect Joe Biden for Secretary of the Treasury on Tuesday called for “big” action against the COVID-19 pandemic and economic crisis at Tuesday’s Senate confirmation hearing. The Senate held confirmation hearings on Tuesday for Yellen and several of its key members Mr Biden’s office.
“Economists do not always agree, but I think there is a consensus now: without further action, we risk a longer and more painful recession now – and the long-term scarring of the economy later,” Yellen argued.
Asked what would provide the biggest “bang for the dollar” in economic relief, Yellen replied: “The alignment we offer to those most in need and small businesses have the best chance of providing both relief to those who have been so severely affected by the pandemic and creating much of the spending on the dollar spent. She said this would “create jobs across the economy”.
Her call to action came just days after Mr Biden unveiled an FDR-style vision to control the coronavirus and address the economic crisis that has plagued millions since the beginning of last year.
“In the next few months, we will need more help to distribute the vaccine; to reopen schools; to help states keep firefighters and teachers in the workplace,” Yellen told Congress. “We will need more funding to ensure that unemployment insurance controls continue to disappear; and to help families who are at risk of starvation or loss of housing.”
Biden’s $ 1.9 trillion US rescue plan includes provisions 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 number of other aid measures. Yellen acknowledged $ 1.9 trillion on Tuesday.
“Neither the president-elect nor I are proposing this aid package without 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 hard. In the long run, I think the benefits will far outweigh the costs, especially if we care about helping people who have struggled for a very 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 health” in the administration. She told him that in the short term, she felt that “we can afford what it takes to get the economy up and running, to get through the pandemic,” and pointed out research in other countries, suggesting that “spending money often a weak economy ends up creating a shorter debt burden in the long run than failing to provide this support. ”
Yellen said “we must finally make sure that the deficits we run, if we do this, are in line with fiscal sustainability”, but noted that “the world has changed”. Yellen predicted that interest rates will remain low for a long time, although he 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 he believes the secretary of the treasury has a dual mission: Helping Americans get out of the pandemic and get back to work and also rebuild the economy. , so that American workers can compete globally.
Yellen was one of five Biden nominees to testify before Senate committees Tuesday. Appointed Secretary of State Tony Blinking, Secretary of Defense appointed general retired Lloyd Austin, Designated Secretary of the Department of Homeland Security Alejandro Mayorkas and director of the national intelligence candidate April Haines he also appeared before the parliamentarians of the Senate.
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 the first woman to serve as president of the Federal Reserve.
Adam Brewster contributed to this report.