Janet L. Yellen Economic Pioneer

by Grace Burns

On Tuesday, December 1st, President-Elect Joe Biden, announced his cabinet selections for the upcoming Presidential cycle.

His choices were notable from both a social and economic perspective. From an economic perspective, the most pertinent choice made was that of Janet L. Yellen as Treasury secretary. Yellen’s past experience most notably includes being the chairwoman of the Federal Reserve from 2014 to 2018 and Chair of Bill Clinton's Council of Economic Advisers. She is slated to become the first female Treasury secretary in history and will be the first economist to hold the country's top three economics jobs. She is a decorated and educated economist, with a P.h.D from Yale University.

According to the New York Times, Secretary Yellen said that urgent Congressional action is necessary to keep the American economy afloat and avoid long-term devastation in the market. The economic damage done so far is an, “American tragedy”, said Yellen.

According to CNN, the Federal Reserve has exhausted its efforts with interest rates to stimulate the economy. The next action to be taken is fiscal; Yellen will be in charge of dictating the government spending agenda, in order to effectively boost the economy. However, Yellen’s choices will garner backlash over the size of the national debt.

From a political perspective, Yellen is regarded well on both sides of the aisle. She was previously confirmed as Federal Reserve Chair with overwhelming support, and is expected to be met with the same reaction in the Senate for their approval of her as Treasury Secretary.

Yellen even received support from the Trump Administration. After the announcement of Yellen’s appointment, Gary Cohn, President Trump's first National Economic Council director, tweeted that Yellen is an “excellent choice”, according to NBC. “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,” Cohn said.

It is abundantly clear that Secretary Yellen has her work cut out for her, amidst the COVID Pandemic. 100,000 hospitalizations for the Coronavirus were just surpassed in the United States; the recent spike of positive cases demonstrates to economists the possibility of a “double-dip” recession. This recession will particularly affect small businesses and the restaurant and service industry.

To combat this, the two lending programs slated to be continued through the transition into the Biden Administration are a locally focused stimulus that supports states and cities and the Main Street Lending program, which is targeted towards small and mid-sized businesses. Best of Luck, Secretary Yellen!