United States Secretary of the Treasury Janet Yellen refuted reports that she was trying to cut the amount of spending in President Biden’s COVID-19 spending package, despite a book claiming that “too much government money was pouring into the economy.”
Yellen responded Saturday to excerpts from a biography saying she wanted a smaller package than the nearly $2 trillion U.S. bailout (ARP), which Biden signed into law in March 2021, bringing the government’s total pandemic aid to nearly $6. trillion came.
“I have never pushed for the approval of a smaller US bailout, and I believe ARP has played a pivotal role in driving strong growth in 2021 and beyond, with the United States’ real GDP growth outpacing other advanced economies. and our labor market is recovering faster compared to historical experience,” Yellen said in a statement on Saturday.
YELLEN DEFENDS BIDEN’S HUGE STIMULUS BILL DESPITE SKY-HIGH INFLATION
An upcoming biography of Yellen states that she thought the ARP represented too large and too rapid an infusion of government dollars into the economy.
Privately, Yellen agreed with [former Treasury Secretary Lawrence] Summers that too much government money was flowing too quickly into the economy,” wrote Owen Ullmann, a longtime journalist in Washington and author of “Empathy Economics,” published Sept. 27. The book excerpt was first reported by Bloomberg.
Biden took office amid “the nation faced acute economic challenges,” and there were high risks of “a downturn that could rival the Great Depression,” Yellen said on Saturday.
The money provided in the ARP enabled the country to better withstand “shocks to our economy such as the Russian war in Ukraine and successive waves of COVID-19,” Yellen said.
KARL ROVE RIPST BIDEN’S INFLATION PLAN: HE WANT A POLITICS PRACTICE
According to Ullmann’s book, which publisher PublicAffairs said had “unfiltered access” to the Treasury Secretary, Yellen’s concern about inflation is “the reason she had unsuccessfully attempted to cut back the $1.9 trillion contingency plan by a third in early 2021. screws before Congress de Yellen “would have preferred something close to $1.3 trillion, according to colleagues,” Ullmann wrote.
The Treasury Department said in a response to Bloomberg’s report that Yellen has never pushed for a smaller package, Bloomberg reported.
“High inflation is now the government’s top economic priority,” Yellen said on Saturday. “We are committed to addressing this by respecting the independence of the Federal Reserve and giving them room to act. We are also using policy tools we have in place to address supply-side bottlenecks and are urging Congress to take action to reduce some of the high costs Americans face, in areas such as prescription drugs. We also support deficit reduction to ease inflationary pressures.”
On Tuesday, Yellen admitted she was wrong about steep inflation, particularly in gas and food prices.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
“I think I was wrong then about the path inflation would take,” Yellen said during an interview with CNN. “As I mentioned, there have been unexpected and major shocks to the economy that have pushed up energy and food prices and created supply bottlenecks that have hit our economy hard that I didn’t fully understand at the time.”