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WILMINGTON, Delaware: President-elect Joe Biden introduced his economic team on Tuesday (Dec. 1) and promised they would lead the charge of a plan to bring further relief to America’s reeling economy, which his candidate for Secretary of the Treasury called a ” American tragedy. ” “.
The diverse group, featuring women and minorities in key roles, will inherit the consequences of millions of job losses, including a continuing wave of corporations laying off workers and small businesses closing their doors as the number of COVID cases rises. -19.
Even with good news about potential vaccines, economists warn that they may not arrive soon enough to avoid further damage, as a strong initial recovery loses steam.
“I know times are tough, but I want you to know that help is on the way,” Biden said at the event to introduce the “tried and tested” team led by former Fed chief Janet Yellen, his choice for secretary of the Fed. Treasure.
He called on Congress to quickly pass a new “robust” aid package, but said that everything the legislature has accomplished will not be enough.
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“We need to act now and we have to work together,” Biden said, promising “to build a new American economy that works for all Americans.”
He said his team is already working on a new plan that can be launched “on day one” to revive the economy and create more than 18 million jobs through investments in infrastructure, clean energy and manufacturing.
The world’s largest economy cut more than 20 million jobs in the first weeks of the pandemic, and has only recovered about half of them.
“AMERICAN TRAGEDY”
Yellen previously made history as the first woman to lead the Federal Reserve, and she would score another top spot if confirmed as Treasury Secretary, a job that has never been filled by a woman.
She is well regarded for managing the central bank through the aftermath of the global financial crisis, and said the country faces another “historic” crisis that is hitting the most vulnerable people the most.
Yellen warned that “inaction will produce (a) recession that will reinforce itself and cause even more devastation.”
“So many people struggling to put food on the table and pay bills and rent. It’s an American tragedy,” he said.
President-elect Joe Biden (right) listens as Janet Yellen (left), whom Biden nominated to serve as Secretary of the Treasury, speaks at The Queen Theater, December 1, 2020, in Wilmington, Delaware. (Photo: AP / Andrew Harnik)
READ: Comment: Was Trump Really That Good For The Economy And Financial Markets?
Outgoing Treasury Secretary Steven Mnuchin on Tuesday reiterated his support for forging a compromise, though he said it should be a limited package.
“I will continue to work with Congress,” Mnuchin said. “I urge Congress to pass something quickly.”
The goal is to enact a successor to the $ 2.2 trillion CARES Act after its main provisions expired earlier this year and with more Americans losing aid just after Christmas.
But negotiations remain at a standstill and, without the support of Senate Republican Leader Mitch McConnell, the two sides face a tough fight for approval in the final weeks of Donald Trump’s presidency.
McConnell told reporters Tuesday that he received a new proposal from top Democrats and is assessing what kind of deal Trump is willing to sign and what other Republican lawmakers are willing to support.
“We just don’t have time to waste,” he said, acknowledging that a package “would require bipartisan support to get out of Congress.”
Democratic House Speaker Nancy Pelosi spoke with Mnuchin on Tuesday, saying the agreement on a new aid package was “a long time ago.”
They also discussed a budget agreement to avoid a government shutdown on December 11, with Pelosi highlighting progress on a bipartisan spending package.
BIDEN TEAM
Earlier Tuesday, a bipartisan group of lawmakers offered a $ 908 billion pledge that could address some of the immediate needs, including extending unemployment benefits and providing more subsidies to struggling businesses.
Separately, McConnell circulated a spending proposal to his party faithful. It is asking for $ 500 billion in aid, including $ 332 billion for small businesses, said a source in the Republican Congress.
READ: Comment: China outperforms the US in post-crisis recovery, again
In a joint appearance with Mnuchin before the Senate Banking Committee, Federal Reserve Chairman Jerome Powell again urged lawmakers to provide more help to support the economy.
In an apparent response to the concerns of deficit hawks, he emphasized that the “risk of overdoing it” is far outweighed by the risk of not doing enough.
Federal Reserve Chairman Jerome Powell has warned many times about the consequences for the US economy if more stimulus is not approved. (Photo: AFP / Susan Walsh)
“Additional tax relief would really help protect against” a worse recession, Powell said.
Other nominees for Biden’s economic team include Nigerian-born Wally Adeyemo, who would be the first African American to play the role of undersecretary of the Treasury.
Neera Tanden, chair of the liberal think tank Center for American Progress, was chosen to head the Office of Management and Budget.
If confirmed, he would be its first leader of South Asian origin, but it is a controversial choice facing opposition from conservatives and progressives.
Cecilia Rouse, dean of the Princeton School of Public and International Affairs, was appointed to chair Biden’s Council of Economic Advisers and would be the first African-American to serve.
