The US labor market is stalling and in a “deep hole” that can take years to escape if lawmakers do not quickly pass an aid package that gives workers a bridge to the end of the epidemic, Treasury Secretary Janet L. Yell Warned on Sunday.
In contrast, President Biden passed the proposed $ 1.9 trillion package allowing the economy to reach full employment by next year, Ms. Yell said.
He expressed concern that large spending would increase inflation, adding that the economy would be stuck in a long, slow recovery after the 2008 financial crisis, if lawmakers do little.
“The most significant risk is that we leave workers and communities affected by the epidemic and the economic toll,” Ms. Yellen said on CNN’s program “State of the Union”. “We must ensure that it does not take a permanent toll on their lives.”
Lawrence H. Summers, a former Treasury Secretary under President Bill Clinton, Argued in The Washington Post on Thursday Mr. Biden’s proposal was so large that it could heat up the economy. But the former Federal Reserve chair, Ms. Yellen, said on CNN that she had spent years studying inflation and was confident that policymakers had the tools to deal with it if it were to materialize.
Democrats in Congress went last week to fast-track Mr. Biden’s plan, but Details of the law are still being worked on. Ms. Yellen said that it is important to ensure that not only low-income workers but also middle-class people, such as teachers and police officers, get the additional support they need.
“Of course, this shouldn’t go down to very well-off families,” Ms. Balen said on CBS’s program “Face the Nation,” Mr. Biden was discussing with Congress where to set the income threshold for eligibility. .
After an epidemic aid package passes, Ms. Yellen said, Mr. Biden wants to pass a bill of jobs created to address infrastructure investment, labor training, and climate change.