The head of the Treasury has an expansive influence across the government, with a key role in defining the government’s stance on taxes, economics and financial regulation, while acting as an international diplomat with participation in trade negotiations and sanctions policy.
But the immediate focus will be on stopping the pain of the coronavirus pandemic, which claimed the lives of more than 400,000 Americans.
“The pandemic caused widespread devastation,” she told the committee earlier this week at her appointment hearing. “Entire industries have stopped their work. Eighteen million unemployment claims are being paid every week. The food bank shelves are getting empty. The damage was enormous and, as the President-elect said last Thursday, our response must also be. ”
She also suggested on Tuesday that the Biden government will wait until the economy is stronger before pressing tax increases for wealthier Americans and companies. Yellen said the government would move to raise taxes for other things, such as a plan to increase spending on infrastructure, which would follow the coronavirus relief legislation.
In the meantime, the government will have to design a course on how to deal with China; President Donald Trump stepped down with tariffs still in effect on more than $ 350 billion in Chinese products, as well as tariffs on steel and aluminum imports that have been implemented through his national security authorities.
Yellen told senators that the Biden government would use all available tools to tackle China’s unfair trading practices, but did not approve of Trump’s tariff tactics.
It is also under pressure from the left to focus on the interconnections between the financial system and climate change. Yellen said he plans to start a new “center” of the Treasury that would examine the financial system risks arising from climate change and related tax incentives. She plans to appoint a “high-level” official to lead climate efforts.
In written responses to senators released on Thursday, Yellen also endorsed the idea of a higher minimum wage.
“Raising the minimum wage will lift tens of millions of Americans out of poverty and, at the same time, expand access to opportunities for countless small businesses across the country,” she wrote. “It is important how this is implemented, and the president’s minimum wage will be progressive over time, giving small businesses plenty of time to adapt.”