Former Federal Reserve Chair Janet Yellen (Janet Yellen) speaks at a press conference after the Federal Open Market Committee meeting in Washington, DC on September 20, 2017.
Treasury Secretary Janet Yellen said on Friday that despite strong job growth last month, Congress still needs to pass the $1
In an interview with PBS NewsHour on Friday, Yellen said that Biden’s package should not just be because the February employment report showed that 379,000 new jobs were created, which is the best since October.
She said that at this rate, it will take more than two years for the country to return to full employment. But she said that with the government’s package, the country is expected to return to full employment before next year.
Yellen said: “This is a huge plan, but I think we need to scale up now, and we have the ability to scale up.” “The most important thing is to get our economy back on track and help people get back to life to ensure This pandemic will not permanently harm our workforce.”
Yellen said that the unemployment rate fell to 6.2% in February. It overestimated the growth of the labor force because it did not include the 4 million people who had stopped looking for work and exited the job market. She said that the actual unemployment rate is 10%.
After approval by the House of Representatives last week, the Senate is now debating a $1.9 trillion bailout package. Supporters are trying to keep Democrats in 50 to 50 seats because no Republicans are expected to vote for the measure.
When asked about the turmoil in the US financial market in the past two weeks and interest rates starting to rise, Yellen said that she did not see development as a sign that investors were beginning to worry about losing control of inflation. She said that signs of interest rate hikes indicate that as more people are vaccinated and Biden’s fiscal plan is approved by Congress, the economic outlook is beginning to improve.
Yellen said that the Fed “has the tools to solve the inflation problem, but I don’t think the market is worried about it.”
Yellen also said that Biden remains firmly committed to raising the minimum wage to $15 an hour. She said that after members of the Senate ruled that the proposal cannot be part of the relief bill, the government will seek other legislation to include the proposal later this year.
She said the government is developing a “better reconstruction” measure to increase spending on infrastructure, which will also address racial inequality by increasing support for job training and education. She said the government also hopes to deal with other issues, such as paid leave and childcare.
In terms of its relationship with the overall economy, the national debt has risen to the lowest level since World War II. At present, the national debt is no longer a threat, because although interest rates have risen, they have historically remained at that level. She said, low level.
Yellen said: “It can be said that the expenditures we are doing now can put our economy back on track, thereby helping us to embark on the road to debt.”