Yellen: Government needs to come up with strong support for US economy

The US government must act ‘grandiose’ on the new aid package to guide the United States economy through the coronacrisis. That says Janet Yellen, who has been nominated by future President Joe Biden to become the new finance minister. In the past, Yellen was chairman of the Federal Reserve, the US dome of central banks.

Yellen will appear in the Senate on Tuesday for a special commission. In a pre-published statement, she says that now is the time to take major steps against the coronacrisis. Biden came up with a plan last week for a corona support package of 1.9 trillion dollars. He said that investments are needed to drive the economy and that the vaccination programme will be accelerated to get the virus under control.

In the statement, Yellen states that the high level of US public debt is taken into account when it comes to the new aid package. But now with the very low interest rates it is wise to come up with great incentives, says Yellen. โ€œI believe that the benefits outweigh the disadvantages, especially when we are going to help people who have been struggling for a long time.โ€

The Biden support package, which will be sworn as the new president on Wednesday, will provide $415 billion in additional funds to combat the virus outbreak and accelerate the vaccination programme, about USD 1 trillion in direct support for households and around 440 billion dollar in aid for small businesses and communities that have been hit hard by the pandemic.

According to Yellen, the long-term goal of the Biden administration is to create more prosperity for a larger group of Americans. It believes that the US economy suffers from great inequality, especially when it comes to minorities. For example, Biden wants to raise the federal minimum wage.

74-year-old Yellen will be the successor to Steven Mnuchin and will become the prime female secretary of finance in the US, if her nomination is approved. She was chairman of the Fed from early 2014 to early 2018.