Scheduled to Speak at Senate Confirmation Hearing
Emphasizes Need for Additional Economic Stimulus
[Asia Economy New York=Correspondent Baek Jong-min] Janet Yellen, the nominee for U.S. Treasury Secretary (photo), is reported to emphasize the need for additional economic stimulus, stating that now is not the time to worry about expanding the national debt.
The New York Times (NYT) and The Wall Street Journal (WSJ) reported on the 18th (local time), citing Yellen’s opening statement for the Senate confirmation hearing scheduled for the following day.
According to the NYT, Yellen said, "President-elect Joe Biden and I did not announce the stimulus bill without concerns about the increase in national debt," adding, "With interest rates historically low, the wisest thing we can do is to big act."
She further explained, "The benefits from a large-scale stimulus will far outweigh the costs." She expressed concern that "without further action, the economy will be put at risk and long-term growth potential will be impaired." This dismisses the Republican concerns about a national fiscal crisis due to debt expansion and emphasizes the necessity of the $1.9 trillion additional stimulus package announced by President-elect Biden.
The WSJ also reported that Yellen will focus on proving the reasons for pursuing fiscal expansion despite the burden of the U.S. national debt swelling to $26.1 trillion during the hearing. It is also anticipated that Yellen might mention whether she will operate additional emergency lending programs through support for the Federal Reserve (Fed), unlike the Trump administration.
Yellen is also expected to define her mission at the hearing as supporting Americans to overcome the novel coronavirus disease (COVID-19) while rebuilding the economy so that Americans can compete in an increasingly fierce global economy.
She has also set a policy to focus her efforts on addressing the widening wealth gap caused by the COVID-19 crisis. She is expected to express her view, saying, "Many worry about K-shaped growth (polarization), but even before the COVID-19 crisis, we have experienced polarization and people of color have been adversely affected," and that she will work on related measures.
The NYT evaluated that Yellen is taking a distinctly different approach to the role of Treasury Secretary compared to her predecessor, Steven Mnuchin. The NYT expects Yellen to actively pursue financial firm regulations in line with the demands of the progressive wing within the Democratic Party.
Janet Yellen, the nominee for U.S. Treasury Secretary, is reported to emphasize the need for additional economic stimulus, stating that now is not the time to worry about expanding the national debt.
The New York Times (NYT) and The Wall Street Journal (WSJ) obtained Yellen’s opening statement for the Senate confirmation hearing scheduled for the following day and reported accordingly on the 18th (local time).
According to the NYT, Yellen said, "President-elect Biden and I did not announce the stimulus bill without concerns about the increase in national debt," adding, "With interest rates at zero, it is wise to act big." She further explained, "The benefits from a large-scale stimulus will far outweigh the costs."
She expressed concern that "without further action, the economy will be put at risk and long-term growth potential will be impaired." This dismisses the Republican concerns about a national fiscal crisis due to debt expansion and emphasizes the necessity of the $1.9 trillion additional stimulus package announced by President-elect Joe Biden.
The WSJ also reported that Yellen will focus on proving the reasons for pursuing fiscal expansion despite the burden of the U.S. national debt swelling to $26.1 trillion during the hearing. It is also anticipated that Yellen might mention whether she will operate additional emergency lending programs through support for the Federal Reserve (Fed), unlike the Trump administration.
Yellen is also expected to define her mission at the hearing as supporting Americans to overcome the novel coronavirus disease (COVID-19) while rebuilding the economy so that Americans can compete in an increasingly fierce global economy.
She has also set a policy to focus her efforts on addressing the widening wealth gap caused by the COVID-19 crisis. She is expected to express her view, saying, "Many worry about K-shaped growth (polarization), but even before the COVID-19 crisis, we have experienced polarization and people of color have been adversely affected," and that she will work on related measures.
The NYT evaluated that Yellen is taking a distinctly different approach to the role of Treasury Secretary compared to her predecessor, Steven Mnuchin. The NYT expects Yellen to actively pursue financial firm regulations in line with the demands of the progressive wing within the Democratic Party.
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