It is common for former government officials, including Fed leaders, to make money by giving speeches that share their insights into the economy and policies. However, the announcement of Yellen’s lucrative speaking fees is uncomfortable, as she may soon be Biden’s most important person in economics and finance.
If Yellen is confirmed as secretary of the Treasury, Yellen will swing a lot over everything, from taxes and climate to tariffs and government spending. Yellen would also chair a team of U.S. regulators responding to emerging risks in the financial system.
“This disclosure is in line with broader Democratic concerns about the revolving door and the access that certain financial services companies have to key policy makers,” Isaac Boltansky, director of policy research at Compass Point Research & Trading, said in an email.
Big bank speeches
The fact that most of Yellen’s speaking money comes from the financial industry may cause her to be too sociable with Wall Street.
The group called on Yellen to “publish” all of her paid speeches “in full” – a disclosure that would state whether she ‘merely thinks in the markets or offers lobbying / policy advice’.
Former government officials have been criticized for their post-political relations with major banks and corporations.
Biden’s transition team downplayed concerns about Yellen’s revenue from Wall Street, noting that some of the speeches were moderated or covered by journalists.
“Look at her enforcement record – it’s not someone who beats when it comes to bad actors or bad behavior,” a Biden transition official told CNN Business.
“She did not hesitate to tell an audience that the rules for their business need to be stricter and stricter – and otherwise it could create problems for the economy,” the Biden transition official said.
Avoid conflicts of interest
However, transcripts of Yellen’s speeches to Wall Street banks have not been released. And the Biden transition official did not immediately give specific examples of Yellen telling companies that the rules 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 no doubt
Analysts said the revelation was unlikely to derail Yellen’s confirmation from the U.S. Senate.
“Yellen will face questions about these speeches during the confirmation process, but it is difficult to foresee that this disclosure will affect her chances of becoming treasury secretary,” Boltansky said. “The fact is that she did absolutely nothing wrong and that she will still sail after confirmation.”
Yellen’s forms contain 21 pages and contain her stamp collection, which is estimated to be worth between $ 15,001 and $ 50,000.
Greg Valliere, chief policy officer of AGF Investments, doubts whether the fees will prevent Yellen from becoming the first woman to head the US Treasury Department.
“She has such a reservoir of goodwill on Capitol Hill that she can easily get confirmation,” Valliere said.