It is common for former government officials, including Fed leaders, to make money by making speeches that share their perceptions about the economy and politics. However, disclosing Yellen’s lucrative lecture fees is strange because she could soon be the person responsible for Biden on economics and finance.
If confirmed as Secretary of the Treasury, Yellen will have enormous influence on everything from taxes and climate to government tariffs and spending. Yellen will also chair a team of US regulators that respond to emerging risks in the financial system.
“This disclosure fits in with some broader Democratic concerns about the revolving door and the access that certain financial services companies have to key policymakers,” said Isaac Boltansky, director of political research at Compass Point Research & Trading, by and -mail.
Speeches from major banks
The fact that most of Yellen’s speaker fees come from the financial sector may raise concerns that she is too close to Wall Street.
Former government officials have been criticized for their post-political relations with large banks and corporations.
Biden’s transition team downplayed concerns about Yellen’s Wall Street income and noted that some speeches were moderated or covered by journalists.
“Take a look at his track record of repression – this is not someone who makes a fuss when it comes to bad actors or bad behavior,” a Biden transition official told CNN Business.
“She did not hesitate to tell some public that the rules that govern her business should be tougher and more rigid – and otherwise it could create problems for the economy,” said the Biden transition official.
Avoiding conflicts of interest
However, the transcripts of Yellen’s speeches to Wall Street banks have not been made public. And Biden’s transition officer did not immediately provide specific examples of Yellen telling companies that the rules may need to be tightened.
In addition, Yellen plans to resign from the Washington Speakers Bureau, which represented the former Fed chief in paid speeches.
Confirmation without doubt
Analysts said the disclosures should not undermine Yellen’s confirmation by the U.S. Senate.
“Yellen will face doubts about these speeches during the confirmation process, but it is difficult to imagine that this disclosure has an impact on his chances of becoming Treasury secretary,” Boltansky said. “The fact is that she has done absolutely nothing wrong and will still receive confirmation.”
Yellen’s forms spanned 21 pages and included his stamp collection, estimated at $ 15,001 to $ 50,000.
Greg Valliere, chief American policy strategist at AGF Investments, doubts that the lecture fees will prevent Yellen from becoming the first woman to head the U.S. Treasury Department.
“She has a goodwill reserve on Capitol Hill that will easily win confirmation,” said Valliere.