US Treasury Secretary Janet Yellen defended the Biden administration’s comprehensive spending program in 2021 as a driving force for a strong economic recovery. He argued against criticism that it led to the highest inflation in 40 years.
Janet Yellen contributed significantly to the establishment of the US Relief Plan (ARP) of $ 1.9 trillion (about 249.2 trillion yen at the current rate) last year. The previous Trump administration had introduced two large programs totaling nearly $ 3 trillion. ARP has injected money into households, businesses and local governments to help survive the critical effects of the spread of the new coronavirus infection, but at the same time vaccination has expanded.
Yellen will give a lecture in Washington on the 28th. “These responses played an important role in triggering a strong recovery,” the text said, pointing out that they helped reduce the human casualties of a pandemic. “It will play a central role in driving strong economic growth throughout 2021”, with growth surpassing other developed economies and a faster labor market recovery than the typical pace following a recession. Explained that it brought.
Yellen compares the pace of recovery in the labor market with that after the global financial crisis. After reaching 10% in 2009, it took more than eight years for the U.S. unemployment to fall below 4%, but after approaching 15% in April 2008, it will fall below 4% in just 20 months. became.
Yellen’s speech text does not mention inflation, which is holding back economic recovery for many consumers. With the Democratic Party’s struggling midterm elections in November, the sharp rise in prices poses the greatest threat to the Biden administration.
U.S. GDP-Unexpected negative-trade deficit expansion in January-March (2)
Original title:Yellen Defends Biden’s Stimulus in Face of Inflation Criticism (excerpt)
