Yellen’s candidacy was backed by left-wing members of Biden’s Democratic Party, source says (File)
Washington, United States:
President-elect Joe Biden will appoint former Federal Reserve Chairman Janet Yellen as head of the US Treasury, a choice that, if confirmed by the Senate, would make her the first woman to hold the post.
The 74-year-old, whose appointment has been confirmed to AFP by a financial source close to the Biden administration, is said to be tasked with running the world‘s largest economy as it grapples with massive layoffs and a sharp slowdown in growth caused by the Covid-19 pandemic. .
“Yellen will be the next Treasury Secretary” and she could be officially announced as early as Tuesday, the source said, confirming news first reported by The Wall Street Journal.
Yellen’s candidacy was backed by left-wing members of Biden’s Democratic Party, the source said, and requires Senate confirmation.
Yellen broke down barriers when former President Barack Obama named her Fed President in 2014, a post President Donald Trump ousted her four years later.
At the Fed, Yellen was seen as a “dove” inclined to low interest rates to support employment.
She would succeed Steven Mnuchin and would likely face a months-long stalemate in Congress over the passage of a new spending bill to stimulate the U.S. economy – assuming lawmakers don’t act before l inauguration of Biden in January.
Grant Thornton’s chief economist Diane Swonk called Yellen “a very talented and gifted economist” on Twitter.
“She will make a great secretary of the treasury at a critical time and write another chapter of the history books,” she said.
“ Essential ” expenses
The United States is home to the world‘s largest Covid-19 epidemic, and as the economy plagued by turmoil, Congress rallied in March to pass the $ 2.2 trillion CARES law that increased unemployment benefits, supported small businesses and allocated money to hard-hit airlines to maintain their staff. .
But these provisions expired over the summer, causing 32,000 holidays among the major airlines alone and raising fears of another economic recession.
Congress is deadlocked on passing more aid, with Democrats backing another $ 2.2 trillion measure, but Republicans insisting on a series of smaller bills.
Gregori Volokhine, chairman of Meeschaert Capital Markets, called Yellen a “friend of the markets” for supporting new spending that would boost stocks, and noting that her confirmation would mark a return of technocrats to the executive branch.
“After four years of political appointments, we have professional appointments, not only political professionals but also professionals in their professions,” he said.
Currently distinguished at the Brookings Institution in Washington, Yellen has shown support for the increased spending.
“Fiscal policy has a very important role to play now,” she said in an appearance this month. “I think it’s essential.”
Biden, who served as Obama’s vice president and defeated Trump in the Nov. 3 election, moved quickly to take key positions in his new cabinet.
Earlier Monday, he announced a series of appointments to key national security positions, including former Obama official Antony Blinken as secretary of state.
The Dow closed up 1.1% following the announcement of Yellen’s appointment and another optimistic announcement regarding a Covid-19 vaccine.
(Except for the title, this story was not edited by GalacticGaming staff and is posted from a syndicated feed.)
