Yellen, U.S. Treasury: "Biden's $1.9 Trillion Stimulus Can Achieve Full Employment Next Year"

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[Asia Economy Reporter Yujin Cho] U.S. Treasury Secretary Janet Yellen stated that if President Joe Biden's $1.9 trillion COVID-19 relief package passes, the country could return to full employment next year; otherwise, job growth and the economy will recover slowly.

On the 7th (local time), Yellen appeared on CBS's 'Face the Nation' and mentioned that the job stagnation is facing a dangerous situation. She diagnosed, "Low-wage earners, minorities, and women are suffering the most, and long-term recession could cause damage that is difficult to recover from."

On the same day, she also said on CNN, "(Without President Biden's relief plan) it will be difficult to recover jobs until 2025." She emphasized, "The Biden administration's relief plan is not specifically aimed at job creation, but the spending generated by it will create demand for workers."

She also rebutted former Treasury Secretary Larry Summers' criticism that Biden's relief plan would fuel inflation, stating that the government can manage it.

Yellen said, "My predecessor pointed out the inflation risk of this bill. That is a risk we must consider," but added that since he has studied inflation for a long time, if such a risk materializes, the country has the means to address it.

She added, "The economic challenges and tremendous suffering we need to solve are the greatest risks."

When asked whether President Biden is ready to sign the relief bill without Republican support, Yellen avoided a clear answer but said both she and Biden oppose narrowing the cash payment recipients, emphasizing that middle-class families deserve assistance.

She argued, "If you think about an elementary school teacher or police officer earning $60,000 a year, and children not attending school and those who may have had to quit work to care for them, facing many additional burdens, it is appropriate for them to receive support."

The Republican Party opposes the size of Biden's relief bill citing concerns such as increased debt, and particularly the issue of providing an additional $1,400 cash payment per person to citizens earning less than $75,000 annually (about 84 million won; $150,000 for couples) has become a point of contention.

Yellen reiterated, "The exact details of who will receive the cash payments need to be decided, but middle-class families facing difficulties also need help."

This content was produced with the assistance of AI translation services.