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The pandemic has put the United States in a deep crisis and has put a dead hand on the economy. Recently, the strong economic boom was Trump’s trump card, now countless small businesses are in danger of collapse, more than 10 million Americans have lost their jobs, and unemployment has risen to its highest level since the depression of the decade. 1930.
According to constant media reports, the task of turning the economic wheels will now fall to Janet Yellen, former head of the Federal Reserve. And the 74-year-old economist has solid experience in crises.
– She is extremely talented and, with her experience, is the right person to take charge in these difficult times, Grant Thornton chief economist Diane Swonk tells AP.
Avoid bank collapse
In the 1990s, when the Asian crisis devastated the world economy, Janet Yellen became Bill Clinton’s top adviser. In 2008-2009, he sat on the Fed’s governing council tasked with dealing with the financial crisis that nearly caused the banking system to collapse. And in 2014, when the global recession finally ended, she was promoted to CEO. The first woman in the central bank’s 101-year history.
As head of the Fed, Yellen was seen as a “dove” prioritizing high employment by keeping interest rates low. Unlike the “hawks”, who see the fight against inflation as their main task. If she becomes Finance Minister, most people believe in a demand-driven crisis medicine with government support for both businesses and individuals.
Positive market reactions
Financial markets have reacted positively to speculation about Janet Yellen as the next finance minister, probably because she is expected to come with stimulus rather than austerity. At the same time, Yellen warned in interviews about budget deficits and indicated that the country may need both tax increases and cuts in the pension system.
According to the New York Times, Republican Hank Paulson, George W Bush’s former Treasury Secretary, describes Yellen’s new job as “brilliant news for America”:
– It will be difficult, but she has the experience, talent, credibility, temperament and relationships with both parties in Congress that it takes to make a real difference.
Brooklyn-born Janet Yellen is not considered to be on the left wing of the Democrats, and she would also have a good chance of being accepted by Republicans in Congress.
