Large-Scale Economic Stimulus and Increased Public Pressure Anticipated
[Asia Economy Reporter Kim Suhwan] Janet Yellen, the nominee for U.S. Treasury Secretary, has passed the Senate confirmation. This has led to expectations that she will play a key role in implementing economic stimulus measures through active fiscal policies as the first Treasury Secretary under President Joe Biden.
According to foreign media including the AP on the 25th (local time), the Senate approved Yellen's confirmation with 84 votes in favor and 15 against during the confirmation vote held that day. Senate Majority Leader Chuck Schumer of the Democratic Party told reporters before the vote, "There is bipartisan support gathering for Treasury Secretary Yellen," adding, "She is the person who can overcome the current economic crisis."
Earlier, at the Senate Finance Committee confirmation hearing, Yellen warned that "without appropriate measures, we will enter a deeper economic recession," signaling the implementation of a large-scale economic stimulus package. Specifically, it includes payments of $1,400 (approximately 1.54 million KRW) per low-income individual, expansion of unemployment benefits, and support funds for small business owners.
She also indicated that her policy stance regarding economic relations with China would focus on pressure-based measures. In her response to additional questions sent by senators after the confirmation hearing, she stated that she would strengthen pressure on China in cooperation with allied countries. In this response, she emphasized, "We will apply collective pressure on China in cooperation with our allies," and "an effective approach is necessary for this."
Yellen served as Chair of the Federal Reserve Board from 2014 to 2018.
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