Yellen Believes Biden's Stimulus Package Would Revive US Job Market by 2022
The new Treasury Secretary has been vocal about her support for President Joe Biden's proposed stimulus package, according to CNBC.
"The U.S. could return to full employment in 2022 if President Joe Biden’s $1.9 trillion coronavirus rescue package is passed," Treasury Secretary Janet Yellen said on Sunday. “There’s absolutely no reason why we should suffer through a long slow recovery,” Yellen said during an interview on CNN’s “State of the Union.” “I would expect that if this package is passed that we would get back to full employment next year.”
Long term unemployment is close to a historical top almost a year after the pandemic shut down the US economy. According to the Bureau of Labor Statistic, around 40 percent of unemployed workers have been out of work for 6 months. 9 million Americans who were working at this time last year are now out of a job and the unemployment rate is sitting at 6.3 percent according to January's numbers.
Yellen cited an analysis conducted by the Congressional Budget Office that determined that it would take until 2025 to push the unemployment rate back down to 4 percent without additional stimulus.
When asked about inflation risks from printing so much money to fund these stimulus packages, she responded that the U.S. has “the tools to deal with” inflation. Congressional Democrats plan to pass the stimulus package within two weeks without Republican support.
“We have people suffering … through absolutely no fault of their own,” Yellen said. “We have to get them to the other side and make sure that this doesn’t take a permanent toll on their lives.”
Republicans have wanted to lower the income cap to receive the stimulus checks to $50,000, but Yellen doesn't support that measure. “If you think about an elementary school teacher or policeman making $60,000 a year, and faced with children who are out of school, and people who may have had to withdraw from the labor force in order to take care of them ... [Biden] thinks, and I would certainly agree, that it’s appropriate for people there to get support,” Yellen said.