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Politics Biden Treasury Pick Janet Yellen's Past Warnings About Debt Trigger Alarm Among Left-Wing Democrats

17:45  25 november  2020
17:45  25 november  2020 Source:   newsweek.com

'You’ve got to have trust.' The strategy Joe Biden hopes will lead to agreement in a post-Trump era

  'You’ve got to have trust.' The strategy Joe Biden hopes will lead to agreement in a post-Trump era President-elect Biden hopes the reputation he has as a deal maker will help him push an agenda in Congress. But skepticism about that outcome is high.“John, are you saying air strikes would not help the people in Srebrenica right now? Is that what you're telling me?” Biden, then a Democrat on the Senate Foreign Relations Committee, said as he pressed McCain, the Arizona Republican who died in 2018.

Biden to pick Janet Yellen for Treasury secretary. " Janet Yellen would be an outstanding choice for Treasury Secretary. The historic nature of Yellen ' s nomination could also help with skeptical Democrats , though she is -- as Biden suggested -- unlikely to invite much pushback.

Yellen was not a formal member of Biden ’ s economics team during the election, but has been part of a What would a Treasury Secretary Janet Yellen mean for stimulus, Fed policy, bank The bullish trading action comes despite warnings from former Nio bull and Citron Research editor Andrew Left

Janet Yellen, President-elect Joe Biden's expected pick for Treasury secretary, could prove divisive in Washington and in some factions of the Democratic party.

Janet Yellen sitting at a table using a laptop: Federal Reserve Chair Janet Yellen speaks during her last news conference in office December 13, 2017 in Washington, DC. Yellen is tipped as Joe Biden's Treasury secretary. © Alex Wong/Getty Images Federal Reserve Chair Janet Yellen speaks during her last news conference in office December 13, 2017 in Washington, DC. Yellen is tipped as Joe Biden's Treasury secretary.

According to several media reports, Biden will select Yellen as his nominee for the Treasury Department, a move that would make her the country's first female Treasury secretary.

If the former Federal Reserve boss is confirmed by the Senate, she will be charged with steering the U.S. economy back on track and curbing the increase in unemployment triggered by the coronavirus outbreak.

Why Janet Yellen makes so much sense as Treasury secretary

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Yellen has a mixed record when it comes to fiscal policy. Although she has repeatedly called for measures to reduce debt, she also recently touted the need for "extraordinary fiscal support" in the pandemic.

Her reported nomination is being hailed on Wall Street and in Washington as generally positive, but she will face a key test in her Senate confirmation hearings as decisions on fiscal spending have become increasingly partisan.

Yellen is on the board for the Committee for a Responsible Federal Budget (CRFB), an organization that has taken some heat from the left wing of the Democratic Party because of its stance on austerity.

Progressive activist and Bernie Sanders 2016 staffer Melissa Byrne tweeted: "It's critical that Yellen ceases to interact with anyone from @BudgetHawks [CRFB's Twitter account] as she embarks on being Treasury Secretary. Building Back Better requires that folks who put the wealthy above the people take a seat and change careers."

What the Yellen choice means for Biden and the economy

  What the Yellen choice means for Biden and the economy The president-elect’s pick for Treasury secretary will give him a close partner, steeped in knowledge of the Fed, who can navigate the wishes of progressive Democrats and the sensitivities of financial markets.Yellen, widely seen as the obvious choice when Biden teased last week that he had made his pick, is slightly untraditional for Treasury. Her pre-government background came largely as an academic economist and monetary policy expert. The top Treasury slot often goes to people — until now all men — with extensive corporate backgrounds and high-profile international experience.

Janet Yellen , now heading for the treasury , was chair of the Federal Reserve. Many of Biden ’ s picks played prominent roles in developing and implementing policies pursued by previous administrations which Trump used as rocket fuel for his grievance-based rise to the White House.

As President-elect Joe Biden finalizes his cabinet picks , Binay Chandgothia from Principal Global Asset Allocation explains what to expect from a Janet Yellen Treasury .

Sam Bell, a Democratic state senator in Rhode Island, described the selection on Twitter as a "terrible call by Joe Biden."

Bell added: "All sorts of progressive insider types have a Yellen blind spot, and it's obvious why: she has strong personal relationships with so many high-ranking lefty DC policy people and politicians, and the word spreads. But on actual policy, she is the worst."

Rohan Grey, an assistant professor at Willamette University College of Law and advocate of progressive economic policy, tweeted: "It would be (is) a huge mistake for the Left to give the impression to the Biden administration that it would be happy with Yellen. She's a deficit fearmonger that presided over premature rate increases based on a mistaken view of how low unemployment could go. Bad bad bad.

"Some people are going to dismiss this as lefty puritanism. But we need massive levels of public investment going forward, and Yellen's track record will be relentlessly used against her & the Biden administration as the Republicans pivot back to deficit/debt fearmongering."

Who is Janet Yellen, Biden’s pioneering pick to lead the Treasury amidst a deep crisis?

  Who is Janet Yellen, Biden’s pioneering pick to lead the Treasury amidst a deep crisis? If confirmed by the Senate, she would be the first woman to lead the Treasury Department since the institution was founded in 1789. So who is Yellen? Born in Brooklyn, Yellen is a renowned economist who spent years as a professor before venturing into Democratic politics as head of President Bill Clinton’s Council of Economic Advisers in the late 1990s. She then took on a series of high-profile roles at the Federal Reserve that culminated in President Barack Obama nominating her as Fed chair, the first woman to serve in that top post. Janet L.

"2 cheers for Janet Yellen at Treasury ," liberal public policy professor and former Labor Secretary Robert Reich wrote on Twitter. While she is not as left - wing as some of the names rumoured to be under consideration, such as Senator Elizabeth Warren

Democratic allies to the Biden campaign said Yellen is expected to be nominated to become Treasury Secretary, heartening investors as she has called for increased government spending to lift the What would a Treasury Secretary Janet Yellen mean for stimulus, Fed policy, bank regulation and bitcoin?

Yellen is set to be nominated as U.S. government debt for 2020 totals about $27 trillion, with a $3.13 trillion budget deficit.

The deficit is more than triple last year's $985 billion shortfall. That is only expected to increase as the nation grapples with a second wave of COVID-19 infections.

The Fed veteran has raised concerns about debt repeatedly in the past 10 years. Following the global financial crisis she spoke of "unsustainable" rising national debt in 2010.

She said: "A high and rising level of government debt relative to national income is likely to eventually put upward pressure on interest rates, thereby restraining capital formation, productivity and economic growth."

In 2015, as Fed chair, she spoke of the adverse affects of overusing fiscal policy.

She said: "It was used in the early years after the financial crisis—we ran large deficits—but in the course of doing that, the debt-to-GDP ratio rose." Financial institutions would not have many further tools in their arsenal should a further shock come along, she added.

In February this year, she told a panel discussion sponsored by the Bipartisan Policy Center: "The U.S. debt path is completely unsustainable under current tax and spending plans."

Fact check: Joe Biden didn't have a birthday party without masks. The video is from 2019.

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It is "something that most people don't understand and I see very little evidence of concern about it in recent years," she added.

For any policy maker, the issue of debt reduction versus the desperate need for stimulus checks for normal Americans is tricky.

It is now eight months since the $2 trillion CARES Act passed the Senate.

While there has been support on both sides of the aisle for another relief package, disagreements on the specifics have led to a prolonged stalemate.

On that issue, Yellen made comments last month that would be welcomed by left-leaning Democrats. She told Bloomberg Television: "While the pandemic is still seriously affecting the economy we need to continue extraordinary fiscal support, but even beyond that I think it will be necessary.

"We can afford to have more debt," she added, noting that interest rates would probably be low "for many years to come."

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Biden set to announce his economic team led by Janet Yellen, who face a dark winter outlook, split Congress .
President-elect Joe Biden is set to announce his economic team Tuesday. What proposals can they push through a split Congress?Analysts expect stiff resistance from a split Congress whose Republicans are reluctant to further swell the massive deficit.

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