Yellen as Treasury Secretary to help economic recovery from Covid-19 crisis: experts

Hailing the nomination of Janet Yellen as the Treasury Secretary, top American lawmakers on Monday said the accomplished and one of the most decorated economists in modern history would help in speedy economic recovery from the Covid-19 pandemic that has had a devastating impact on the country.

“Dr. Janet Yellen’s discipline, determination, and dazzling track record of success at the forefront of economic policy-making will be indispensable in our country’s work to not only recover from this crisis, but to build back better,” House Speaker Nancy Pelosi said after US President-elect Joe Biden announced to nominate the 74-year-old Yellen as his Treasury Secretary.

She said Yellen’s leadership at the Federal Reserve and her knowledge of the markets make her highly regarded both in the international financial community and among policymakers on both sides of the Capitol.

“In particular, her decades of experience in promoting a strong labour market, fighting income inequality and unleashing the full power of women in the workforce will make a difference for millions of workers, our economy and our democracy,” Pelosi said.

‘Excellent choice’

Senator Debbie Stabenow said the next Treasury Secretary will face a historic challenge of rebuilding the economy as the US manages and moves forward from the Covid-19 crisis.

“Janet Yellen is exceptionally qualified and will be ready on Day One to tackle the difficult year ahead. She is an excellent choice to serve as US Treasury Secretary,” Stabenow said.

Yellen served as the 15th Chair of the Federal Reserve, the first woman to lead America’s central banking system since its creation.

Among the most accomplished and decorated economists in modern history, if confirmed, she will become the first woman to lead the Treasury Department in its 231 years of existence, and be the first person to ever serve as Treasury Secretary, Chair of the Federal Reserve, and Chair of the Council of Economic Advisers.

Previous stints

Prior to her leadership of the Federal Reserve, Yellen served as the body’s Vice Chair from 2010 to 2014 following an earlier term on the Federal Reserve Board of Governors and as President of the Federal Reserve Bank of San Francisco.

She served as Chair of the Council of Economic Advisers under President Bill Clinton, has held a litany of high-profile leadership roles with national and international economics organisations, and has forged a prolific career as a professor of economics, including as a faculty member at the University of California at Berkeley for the last 40 years.

Born and raised in Bay Ridge, Brooklyn, Yellen received her bachelor of arts degree from Brown University and her Ph.D in economics from Yale University.

“Now more than ever—in the midst of a pandemic that has cost tens of millions their jobs—we need strong champions for working families and Main Street businesses in our Treasury Department to guide us toward a path of economic prosperity for all—people like Janet Yellen,” said Senator Jeff Merkley.

Throughout her long career of public service, in which she has served as chair of both the Federal Reserve and the Council of Economic Advisors, Yellen has proven herself to be a champion for broad-based economic growth that reaches everyone in the country, he said.

House Ways and Means Committee Chairman Richard Neal said Yellen was a terrific and tested choice to lead the Treasury Department.

She brings years of stellar public service to the table, most notably her time as Chair of President Clinton’s Council of Economic Advisers and as Chair of the Federal Reserve under President Obama, he said.

“Her deep experience and steady leadership are especially valuable as our nation works to recover from the Covid recession. I’m particularly pleased that President-elect Biden has nominated someone with expertise in addressing unemployment, as getting Americans back to work will be a top priority for Congress and the administration in the months and years to come, Neal said.

According to Congressman Bill Foster, Biden’s selection of Yellen to be the next Secretary of the Treasury shows how serious he is about building a competent team to address the complex economic issues that US faces and repairing the damage of the past four years.

“Not only will she be the first woman to serve in this position, she brings a wealth of knowledge and experience on monetary, fiscal, and regulatory policy, so she can immediately get to work on behalf of the American people, Foster said.

“The Biden administration is set to inherit an unprecedented economic crisis and the Department of the Treasury will need to take a central role in delivering the relief that American families and small businesses desperately need amid a deadly pandemic that continues to rage across the country,” he said.

Republican leader of the House Financial Services Committee Patrick McHenry said Yellen demonstrated her intellect, foresight, and independence during the financial crisis, and throughout her term as Fed Chair.

“While I will work against the Biden Administration’s agenda of tax increases and burdensome regulations, I think it’s important we have credible and experienced people to serve at the highest levels of government. Yellen has clearly demonstrated her capacity during her public service,” he said.