Official Nomination of Finance Minister... First Communication via Twitter Immediately After Announcement
Expectations for Eased Fiscal Policy Rise
Biden Receives First Presidential Intelligence Briefing
[Asia Economy New York=Correspondent Baek Jong-min] Janet Yellen, former Chair of the Federal Reserve (Fed) and the officially nominated Secretary of the Treasury for the incoming U.S. administration under Joe Biden, expressed her first remarks saying, "We must restore the 'American Dream.'"
On the 30th of last month (local time), immediately after Biden officially announced his economic team appointments, Yellen posted on her Twitter, "The American Dream is a society where every American can realize their potential and dream bigger for their children," adding, "As Secretary of the Treasury, I will work every day to help everyone rebuild their dreams."
Although Yellen had informed the media and Biden had announced she would be appointed as Treasury Secretary, she had remained silent until now. This is not only her first comment but also her first time posting on Twitter. Even after stepping down as Fed Chair, she had not communicated through social networking services (SNS) such as Twitter. This change is interpreted as reflecting the need for active communication not only with Congress but also with business leaders and labor groups, unlike in the past.
Yellen is expected to provide hints about the future direction of fiscal policy at the economic team introduction press conference held by Biden on the 1st. The New York Times (NYT) predicted, "Biden’s economic team will focus on increasing federal stimulus early on to reduce unemployment and expanding safety nets for households suffering from the COVID-19 pandemic."
After officially nominating Yellen, Biden expressed his expectations, saying, "The economic team will immediately provide relief for Americans during the economic crisis and help rebuild the economy better than ever."
Christine Lagarde, President of the European Central Bank (ECB), also welcomed Yellen’s nomination. She said, "Congratulations to my friend Yellen on becoming Secretary of the Treasury. I look forward to working together to face the challenges confronting the global economy."
The announcement of Yellen’s nomination immediately impacted the market. Bloomberg reported that after the nomination announcement, the dollar index, which measures the dollar’s value against major currencies, fell to 91.59, marking its lowest level since 2018. This is interpreted as reflecting expectations for a more accommodative fiscal policy rather than tightening.
Yellen is also expected to coordinate closely with the Fed. According to the Wall Street Journal (WSJ), Jerome Powell, Fed Chair, in a written response released a day before his congressional testimony, stated that "about $2 trillion in lending programs have been executed" in response to the crisis, and once again opposed Treasury Secretary Steven Mnuchin’s demand to halt some lending programs by the end of the year. Given Yellen’s inclination to emphasize economic stimulus, she is likely to support Powell’s stance.
Biden Receives First Intelligence Briefing...Inauguration Committee Launched
On the same day, Biden received his first intelligence briefing as president-elect and launched the presidential inauguration committee. Tony Allen, President of Delaware State University, was appointed as the committee chair. Allen stated, "This inauguration will look different amid the COVID-19 pandemic, but we will honor the traditions of the American inauguration and involve Americans nationwide."
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