Janet Yellen, US President-elect Joe Biden’s nominee for treasury secretary, urged lawmakers on Tuesday to “act big” on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden.
Yellen said her task as treasury chief will be to help Americans endure the final months of the coronavirus pandemic, and rebuilding the US economy “so that it creates more prosperity for more people and ensures that American workers can compete in an increasingly competitive global economy”.
Biden, who will be sworn into office on Wednesday, outlined a $1.9 trillion stimulus package proposal last week, saying bold investment was needed to jump-start the economy and accelerate the distribution of vaccines to bring the virus under control.
“Neither the President-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big,” Yellen, a former Federal Reserve chair, told the Senate Finance Committee.
“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,” she said. The proposed aid package includes $415 billion to bolster the US response to the virus.