BELOW SUPERNAV drop zone ⇩

Treasury Secretary nominee Yellen urges Congress to do more to fight pandemic recession

FILE – In this Aug. 14, 2019, file photo former Fed Chair Janet Yellen speaks with FOX Business Network guest anchor Jon Hilsenrath in the Fox Washington bureau in Washington. President-elect Joe Biden announced Yellen as his nominee for Treasury Secretary. (AP Photo/Andrew Harnik, File)

MAIN AREA TOP drop zone ⇩

MAIN AREA TOP drop zone ⇩

Testing widget old system

Lorenzo shared

WASHINGTON (AP) — Treasury Secretary nominee Janet Yellen is calling on Congress to do more to fight a deep pandemic-induced recession, saying the threats of a longer and even worse downturn are too great to cut back on support now.

“Without further action, we risk a longer, more painful recession now — and long-term scarring of the economy later,” Yellen said in testimony prepared for her confirmation hearing Tuesday before the Senate Finance Committee.

Yellen, who will be the first female treasury secretary in the nation’s history, is expected to have little trouble winning approval in a Senate that will be narrowly controlled by Democrats once two Democratic senators from Georgia are seated.

In her testimony, Yellen, who was also the country’s first female chair of the Federal Reserve, said that the quick action Congress took by passing trillion-dollar rescue packages last spring and an additional $900 billion relief measure last month were successful in “averting a lot of suffering.”

But she said that even with the extraordinary government help, the pandemic has still caused “widespread devastation.”

The latest coronavirus headlines.

“Eighteen million unemployment insurance claims are being paid every week. Food bank shelves are going empty. The damage has been sweeping and as the president-elect said last Thursday, our response must be too,” Yellen said.

“Over the next few months, we are going to need more aid to distribute the vaccine, to reopen schools, to help states keep firefighters and teachers on the job,” Yellen said. She said more support would also be needed to keep unemployment benefit checks going out and to help families who are going hungry or in danger of being homeless.

Biden last week unveiled a $1.9 trillion relief plan that would provide more aid to American families, businesses and local communities and provide more support for vaccine production and distribution.

While Democrats have endorsed the effort, many Republican lawmakers have expressed concerns about the price tag given soaring federal budget deficits.

Yellen said that she and Biden were aware of the country’s rising debt burden.

“But right now, with interest rates at historic lows, the smartest thing we can do is act big,” she said. “In the long run, I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time.”

The Senate Finance Committee hearing with Yellen on Tuesday is one of several that the Senate will be holding as the incoming Biden administration tries to get its top Cabinet officials in office quickly.

Coronavirus

Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed

Site Settings Survey

 

MAIN AREA MIDDLE drop zone ⇩

Trending on NewsNation

MAIN AREA BOTTOM drop zone ⇩

tt

KC Chiefs parade shooting: 1 dead, 21 shot including 9 kids | Morning in America

Witness of Chiefs parade shooting describes suspect | Banfield

Kansas City Chiefs parade shooting: Mom of 2 dead, over 20 shot | Banfield

WWE star Ashley Massaro 'threatened' by board to keep quiet about alleged rape: Friend | Banfield

Friend of WWE star: Ashley Massaro 'spent hours' sobbing after alleged rape | Banfield

Cloudy

la

68°F Cloudy Feels like 68°
Wind
3 mph E
Humidity
71%
Sunrise
Sunset

Tonight

Partly cloudy early with increasing clouds overnight. Low 62F. Winds light and variable.
62°F Partly cloudy early with increasing clouds overnight. Low 62F. Winds light and variable.
Wind
6 mph W
Precip
13%
Sunset
Moon Phase
Waning Gibbous