WASHINGTON, DC - DECEMBER 16: Federal Reserve Bank Chair Janet Yellen holds a news conference where she announced that the Fed will raise its benchmark interest rate for the first time since 2008 at the bank's Wilson Conference Center December 16, 2015 in Washington, DC. With unemployment at 5-percent and the economy showing signs of strength, the Fed raised the interest rate a quarter of a percentage point and many experts believe the interest rate on short-term loans could go as high as one percent by the end of 2016. (Photo: Getty)
Treasury Secretary Janet Yellen thinks that President Joe Biden‘s $1.9 trillion relief plan could allow for economic growth that would lead to full U.S. employment by 2022.
“We’re in a deep hole with respect to the job market and a long way to dig out,” she told CBS Sunday.
Republicans have been quick to attack the Biden plan slamming its high price. Citing Larry Summers, a secretary of treasury under Bill Clinton, Republicans say that the massive Biden proposal could trigger increased inflation in the U.S. Yellen, however, insisted that the recession caused by the COVID-19 pandemic and the joblessness that came in its wake requires immediate and drastic action.
Yellen, a former head of the Federal Reserve, is the first woman head of the Treasury Department. Yellen noted that the central bank has the tools to handle any threat of inflation. It is most important, she said, that the federal government provide aid with the intent to revive small businesses and reopen schools.
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“We face a huge economic challenge here and tremendous suffering in the country. We have got to address that. That’s the biggest risk,” she said.
Yellen believes that if the $1.9 trillion Biden relief plan is enacted, American joblessness will be reduced considerably by 2022. She explained that reports from the Congressional Budget Office show that unemployment could remain above normal levels until 2025 unless drastic action is taken.
“There’s absolutely no reason why we should suffer through a long, slow recovery,” she said.
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