This is what Trump fears about the appointment of Janet Yellen as Secretary of the Treasury

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As the first Secretary of the Treasury in the United States, Janet Yellen of the Democratic Party is respected by Republicans.

The authors Pierre-Yves Dugua and Armelle Bohineust in a report published by the French newspaper “Le Figaro” The choice of Janet Yellen by President-elect Joe Biden as secretary of the Treasury received acclaim in the circles of Finance, Janet has assumed the post of President of the Federal Reserve (central bank) under Barack Obama.

She is also an experienced Democratic economist, who is respected by many Republicans and can negotiate with Congress’s new leaders on a broad plan to support the economy to counter the United States’ risk of returning to the recession.

The extent and duration of this plan – which Janet Yellen will have to coordinate first – depends on the likelihood that the outgoing Congress will adopt – early next month – an interim plan, and if the reluctant Republican Senate arrives at the moment about spending more than $ 500 billion to help the unemployed. Businesses and companies facing difficulties make a settlement with the Democratic House of Representatives so that Donald Trump can adopt this law before the Christmas celebrations.

The two writers say that the ability to provide effective vaccines against Corona to a large number of Americans in 2021 will be the other determining factor for the volume of one-time spending that Janet Yellen will have to secure from the legislature when she takes up the position of Secretary of the Treasury, that is, the Ministry of Economy and Finance in the United States of America, She will not take office until the end of January.

Nevertheless, Democrats – the two writers add – in the House of Representatives are so far demanding at least $ 2.4 trillion in aid for families and businesses and states and communities. This explains the choice of Janet Yellen by the president-elect.

Joe Biden needs people with experience in his government who can quickly approve the Senate and have credibility with both parties’ elected officials.

Tax the rich

Janet Yellen meets these specifications. The two writers explained, as she is a Yale economics graduate, whom Barack Obama appointed in 2014 as the first chairperson of a robust Federal Reserve system.

Also, Janet Yellen is known to work hard, know her files well, and have “the ability to reach consensus” thanks to her ability to listen, as confirmed by Nobel Prize winner Joseph Stiglitz in Economic Sciences her teacher and considered her one of the best students. Who knew them at all.

The US economy is also counting on the friendly relations between Janet Yellen and her successor as Fed Chairman Jerome Powell to resolve the recent dispute between him and current Treasury Secretary Stephen Mnuchin.

The just-outgoing Treasury Secretary withdrew $ 70 billion in guarantees from the Federal Reserve that were supposed to support potentially exceptional interventions by the central bank in the credit markets of communities and local companies, a decision that angered Jerome Powell and created a state of unease between the central bank and the authority. Executive office, at a time when the economy is in decline again.

Also, Janet Yellen is supposed to go ahead with other key elements of the Joe Biden program, notably tax increases for wealthier corporations and taxpayers and tax forms on carbon emissions.

Alongside this, the future Treasury Secretary will play an important role in negotiating international agreements to reform taxes on multinationals, especially digital giants.

Great intelligence rate

Janet Yellen – whose friends call her “the petite lady with great intelligence” and the 74-year-old – has great chances of becoming by February the first woman at the head of the Treasury. She was also the first to chair the Federal Reserve from 2014 to 2018. She previously served as an economic advisor to President Bill Clinton from 1997 to 1999 and headed the Treasury Department.

The two writers highlighted that her rhetoric, short stature and preference for reconciliation do not detract from her competence, as she specialized during her studies in the labor market and focused in particular on unemployment, its causes, mechanisms, and effects, and on one occasion she said at a conference of the American Federation of Trade Unions that the unemployed “are not just statistics for me.”

State intervention

As chair of the Federal Reserve, Janet has always advocated for state intervention to regulate the economy, reduce inequality, and curb growth and decline cycles.

She married George Akerlof, whom she met after graduation when she joined the Federal Reserve as an economist.

The two economists shared their research while Janet Yellen studied at Harvard and the London School of Economics. Her husband won the 2001 Nobel Prize in Economics, which he shared with Michael Spence and Joseph Stiglitz.

In this context, Republican and former economic adviser to Donald Trump Gary Cohen said, “I do not doubt Janet Yellen’s ability to provide the stability we need to strengthen an economy that serves everyone, especially in these difficult times.”

As evidence of this moderate left-wing economist’s ability to create a consensus, the Le Monde report concludes, Donald Trump’s thinking is to extend her term as chair of the Federal Reserve in 2018.

Source : Le Figaro