Janet Yellen, the newly elected US Treasury Secretary, laid out her vision of the White House's financial policy. Notably, US President Joe Biden named ex-Federal Reserve chair Janet Yellen as his nominee for Treasury Secretary.
Speaking to lawmakers, Yellen stated the need to "act big" and suggested pouring additional stimulus into the US economy.
"Without further action we risk a longer, more painful recession now and longer-term scarring of the economy later," Yellen said. Besides, she noted that the new administration had no intention of raising taxes during the coronavirus pandemic, although it advocated the elimination of tax incentives for offshore companies.
Interestingly, the US Treasury Secretary did not bring up the subject of a strong dollar, apparently because the new administration had shoved the strong-dollar policy aside.
"Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big," Yellen said, commenting on Biden's $1.9 trillion coronavirus stimulus package.