Politics Janet Yellen Hopeful Biden Relief Package Will Bring Back Full Employment in 2022
G20 finance chiefs to talk Covid recovery, aid to poor countries
G20 finance ministers and central bankers will gather for a video conference led by Italy Friday, hoping to align plans for relaunching the global economy after the coronavirus pandemic and to limit harm to the worst-off nations shut out of the race for vaccines. And in November the G20 finance ministers agreed a framework for reducing debt burdens. So far Chad, Zambia and Ethiopia have asked for their debt to be restructured."Debt alleviation, which had been swept under the rug, is now on the agenda and we can certainly expect a step forward," said Federico Niglia, an international relations professor at Rome's Luiss university.
Treasury Secretarysaid Friday that she hopes President 's $1.9 trillion coronavirus stimulus package will help bring back full employment by 2022.
Speaking with PBS NewsHour, Yellen said the U.S. needs to "go big" with coronavirus relief in order to help get the economy back on track to pre-pandemic levels.
Biden's relief bill isn't getting bipartisan support like previous stimulus bills. What do Republicans dislike so much?
All Senate Republicans voted against even starting debate on the $1.9 trillion measure on Thursday.The legislation, dubbed the American Rescue Plan, which the Senate started debating Thursday, is getting a partisan reception in Congress. Democrats want it passed soon, but little to no Republican members of Congress have so far voiced support.
"It's a big [stimulus] package, but I think that we need to go big now, and that we can afford to go big," she said.
"And the most important thing is to get our economy back on track and help people get their lives back, in order to make sure that this pandemic doesn't permanently scar our work force. And I think this is what we need. I'm hopeful that, next year, with a package of this size, we can be back at full employment."
Yellen's comments came after Friday's announcement that the U.S. economy exceeded expectations by adding. While Yellen said she was "pleased" with those numbers, she added that the unemployment rate is still running at about 10 percent.
"When you think about the pace, although 379,000 jobs in one month, it sounds like a lot," she said. "But, at that pace, it would take us more than two years to get back to full employment. And we're — we want to make sure that our workers get back to full employment, the state we had in the economy before the pandemic struck, a lot sooner than that."
Biden rides a Keep It Simple, Stupid strategy to early success
The president’s Covid-relief bill passed the Senate on Saturday. It was a remarkably drama-free milestone for a $1.9 trillion bill.“Crisis creates urgency and they made the relief bill the singular focus of their agenda,” said Rahm Emanuel, who as President Obama’s chief of staff in 2009 ushered through a relief package after himself uttering his famous phrase about not letting a serious crisis “go to waste.” For the Biden team, Emanuel said, Covid relief was priorities “No. 1, 2 and 3 of their agenda.
"The package that the president and his advisers put together that's working its way through thenow was really geared to relieve the suffering of the American people," she added.
Biden's stimulus package, called the American Rescue Plan, wason February 26 and is now undergoing negotiations in the Senate.
The package has faced hurdles in the chamber split 50-50 down party lines, with progressivegoing head-to-head with moderate Democrats and over issues—including a $15 minimum wage, increased unemployment benefits, and direct stimulus payments.
Democrats have since agreed to, cutting checks for individuals making $80,000 and couples earning $160,000.
On Friday, Democrats reached another key comprise by reducing weekly unemployment benefits from, pushing the bill one step closer to approval.
Janet Yellen says the US Treasury is working to deliver relief aid as quickly as possible
Yellen said Biden's pandemic rescue plan would avoid the mistakes made by the federal government after the financial recession of 2008. "During the Great Recession, when cities and states were facing similar revenue shortfalls, the federal government didn't provide enough aid to close the gap," Yellen said. "It was a profound error."States and cities would get $350 billion under Biden's stimulus package.Yellen said she hopes by the end of the year, "city economies will resemble 2019 much more than 2020.
Biden has signaled support for the compromise, according to a Friday statement from White House Press Secretary.
"The President supports the compromise agreement, and is grateful to all the Senators who worked so hard to reach this outcome. It extends supplemental unemployment benefits into September, and helps the vast majority of unemployment insurance recipients avoid unanticipated tax bills," Psaki said in a statement obtained by Newsweek.
"Most importantly, this agreement allows us to move forward on the urgently needed American Rescue Plan, with $1400 relief checks, funding we need to finish the vaccine rollout, open our schools, help those suffering from the pandemic, and more," she added.
With the new compromise, voting on other proposals can now resume. The current negotiation process is known aswhere senators can propose amendments to the relief package, needing only a simple majority vote to be added.
It is currently unknown when the final Senate vote will occur. At that point, the package will then return to the House to be approved.
Yellen: COVID-19 relief bill puts US on track for full employment by next year
Treasury Secretary Janet Yellen said Wednesday that the $1.9 trillion COVID-19 relief bill passed Wednesday by the House could put the U.S. on track to reach full employment by 2022.In a statement praising the bill's passage, Yellen expressed confidence that it would protect the U.S. from a slow, grueling climb from the coronavirus recession and bring the U.S. to historically low unemployment by next year."With the passage of the American Rescue Plan, I believe Americans will emerge from the pandemic with the foundations of their lives intact. And that is an enormous economic and moral achievement for America," Yellen said.
Newsweek contacted the White House for additional comment, but did not hear back in time for publication.
Treasury secretary minimizes risk of inflation caused by Covid relief package .
Janet Yellen said the greater risk was not strengthening the economy as it recovers from the impact of the pandemic.Speaking on ABC's "This Week," Yellen said, "We need to defeat the pandemic. This package really does that.