Janet Yellen heads to the Capitol for the confirmation hearing

Janet Yellen heads to the Capitol for the confirmation hearing

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“Neither the president-elect nor I propose this relief package without an assessment of the country’s debt burden,” Yellen told lawmakers, according to a written testimony obtained by CNN. “But now, with interest rates at historic lows, the smartest thing we can do is act big.”

Biden last week proposed one of the biggest aid packages in history – worth $ 1.9 trillion – in an effort to deal with the economic and public health crises he will inherit when he takes office on Wednesday.
Lawmakers have already approved trillions of dollars in aid funds under President Donald Trump to tackle the crisis created by the coronavirus pandemic. But with job losses increasing and millions still unemployed, Biden and Congressional Democrats have made it clear that their first legislative priority will be a comprehensive stimulus package.

“The pandemic caused widespread devastation,” says Yellen in his statement. “The damage was enormous and, as the president-elect said last Thursday, our response must also be.”

Widespread support for Yellen

Yellen has broad support for his nomination. All of the living ex-US Treasury secretaries asked Congress to confirm it quickly.

“We believe that delaying confirmation from our government’s top economic official would create unnecessary risks during this critical period,” said the endorsement, signed by Republicans like Hank Paulson and John Snow, as well as Democrats Robert Rubin and Larry Summers. It was released on Tuesday before the hearing.

Former officials warned that the United States faces “unprecedented economic conditions” that will require careful involvement by the Treasury Department.

“Any gap in his leadership could hamper recovery efforts,” according to the letter, which was also signed by James Baker, George Shultz, Tim Geithner and Jacob Lew.

Yellen, the first woman to lead the Federal Reserve, has the credentials required by the crisis, the former officials said.

“It is our opinion – based on the personal experience of many of us – that Dr. Yellen’s experience, knowledge, judgment and character make her exceptionally qualified for this role,” said the letter.

Former Treasury secretaries pointed out that Yellen was previously confirmed by the Senate, most recently in 2014.

“It is difficult to imagine a candidate better prepared to meet this great moment of need than Dr. Yellen”, they wrote.

The hope is that Yellen’s confirmation will reassure nervous allies abroad.

“Any delay in confirming Dr. Yellen will only allow worry and confusion to grow among our allies,” said the letter.

– Phil Mattingly and Matt Egan from CNN contributed to this report

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