Yellen knows 'going small' on economic relief would be big mistake - Wyden

Marco Green
January 20, 2021

Wall Street's main indexes rose after upbeat earnings from big U.S. banks and comments from U.S. Treasury Secretary nominee Janet Yellen ahead of Biden's inauguration on Wednesday.

The move would aim to mend the economic damage inflicted by the coronavirus pandemic on the world's largest economy.

Yellen emphasized the extent of the economic and human devastation the virus has inflicted on the USA over the past year and warned of another recession without a set of fiscal policies to address the issues those most impacted by the pandemic face everyday.

Both Republicans and Democrats have indicated they will approve Ms Yellen's nomination.

"Now is not the time to enact a laundry list of liberal structural economic reforms", Republican Senator Chuck Grassley said in his opening remarks.

Yellen said that she and Biden were aware of the country's rising debt burden but felt fighting the pandemic-recession was more important now. "It is on programmes to help us get through the pandemic", she said.

Republicans pressed Ms Yellen on proposals to raise taxes on corporations and the wealthy, more than double the national minimum wage to $15 per hour and distribute $1,400 stimulus payments to most families, which they said did not sufficiently target those in need. "We should oppose attempts by other countries to do so".

"Well before COVID-19 infected a single American, we were living in a K-shaped economy - where wealth built upon wealth while working families fell farther and farther behind", Yellen said.

Ms Yellen also addressed concerns about the impact of further spending on American borrowing.

Yellen urged lawmakers to "act big" on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden.

Oil prices climbed with USA stock markets on Tuesday ahead of Joe Biden's inauguration as US president on optimism that more government stimulus will eventually lift global economic growth. However, she steered clear of using the word genocide. "I think many are used at least in a transaction sense mainly for illicit financing and I think we really need to examine ways in which we can curtail their use and make sure that anti-money laundering doesn't occur through those channels".

"The United States doesn't seek a weaker currency to gain competitive advantage", she's ready to say, the officers stated.

Other reports by Click Lancashire

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