The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
President-elect Joe Biden plans to nominate former Federal Reserve Chair Janet Yellen to serve as his Treasury secretary, people familiar with the matter said, choosing the first woman and a seasoned central banker for the nation’s top economic policy job as the coronavirus pandemic threatens another US downturn.
In Yellen, Biden is likely to find support from both Wall Street, which feared a more provocative pick such as Senator Elizabeth Warren, and progressives, who were concerned he might choose someone too friendly to big banks and the wealthy.
If confirmed by the Senate, Yellen, 74, would have to help steer the US economy through a resurgent pandemic that is already causing parts of the nation to resume painful lockdowns. The most immediate challenge would be breaking a logjam on Capitol Hill to deliver economic relief to long and growing unemployment lines.
Nine months into the pandemic, more than six million people still claim extended unemployment assistance and joblessness is again on the rise as US coronavirus infections exceed 100,000 per day. Biden’s transition team declined to comment.
Investors appeared to welcome Yellen’s selection. The S&P 500 benchmark stock index was up less than 1 percent following the news of Biden’s plan to appoint her.
During her time as Fed chair, tech stocks doubled even as she presided over the first interest rate increases in 11 years.
President Donald Trump’s former National Economic Council director, Gary Cohn, praised Biden’s choice.
“I have no doubt she will be the steady hand we need to promote an economy that works for everyone, especially during these difficult times,†he said in a tweet.
Some investors may be wary of recent comments she made on the need to take greater regulatory action after financial market mayhem when the economy was locked down in March to combat the spread of the virus. But most are likely to take comfort in her stance in favor of additional emergency government spending.
“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,†Yellen said.
But delivering will be tough. Talks between Republicans and Democrats on stimulus have been stalled for months over widely different views on the amount of fresh appropriations needed for Covid-19 relief.