WASHINGTON – Senate confirms Janet L. Yellen, a labor economist and former chair of the Federal Reserve, to be Treasury Secretary on Monday, appointing a key lieutenant to President Biden at a dangerous economic moment as the new government trying to revive an economy. which was plagued by the coronavirus pandemic.
With a vote of 84 to 15, the Senate confirmed me. Yellen, making her the first woman to hold the leading position at the Treasury in its 232-year history. Her quick dual confirmation underscored the support she has garnered from both Republicans and Democrats, which gave her previous position as Fed chair from 2014 to 2018.
Me. Yellen now faces a new and significant challenge. As secretary of the Treasury, she will be responsible for Mr. Bid to help prepare the $ 1.9 billion stimulus package he proposed, send it through Congress and – if approved – oversee the deployment of trillions of dollars in aid money.
The scope of the task became clear over the weekend when a dual group of senators met with senior White House officials on Sunday and expressed doubts that such a large package was needed.
Legislators in both parties have envisioned curtailing the elements of the proposal, including qualifying for a proposed round of $ 1400 checks to individuals and ensuring a more targeted distribution of additional assistance, according to several people familiar with the discussion. They also asked the White House to provide information that could justify the proposed spending, which includes $ 350 billion in state and local aid and $ 130 billion to reopen schools closed by the pandemic.
Now will me. Yellen is pushed into the middle of the talks, which is responsible for convincing many Republicans and some Democrats that the economy still needs a spending package of more than a billion dollars. At her confirmation hearing and in written answers to legislators, Ms. Yellen the opinion of mr. Biden reflects that Congress needs to ‘act big’ to prevent the economy from getting hurt in the long run and defends the use of borrowed money to fund another aid package, saying it is not doing so. workers and families would be worse off.
“The emergency relief bill at the end of last year was just a down payment to get us through the next few months,” she said. Yellen said. “We still have a long way to go before our economy recovers completely.”
Mrs. Yellen also argued that ‘short-term fiscal support does not conflict with long-term fiscal sustainability’, explaining that a healthier economy would ultimately generate more revenue for the government.
The Biden administration has said it hopes a package can win dual support in Congress. However, if Democrats have shown that they are willing to turn to a budget mechanism known as reconciliation, that will enable them to pass the legislation by a simple majority and bypass the usual threshold of 60 votes.
David Wessel, a senior fellow at the Brookings Institution where Yellen recently worked, said she was likely to play a key role in working with Congress, given her credibility with both Republicans and progressive Democrats. He suggested that, due to the long history of Mr. Praying in the Senate, Ms. Yellen could be less involved in negotiations with legislators and would be deployed to make the economic case for certain policies.
“I expect them to use her as an asset if they need an expert,” he said. Wessel said. “Especially when some people need to be talked to.”
Ms Yellen will also have the responsibility of being the United States’ most senior economic diplomat in a time of weakening global tensions. Ms Yellen will have to try to restore America’s economic relations around the world, including with allies such as Canada, Mexico and the European Union, which have become tense under President Donald J. Trump.
These relationships will be critical in light of the Biden government’s plan to combat what Ms. Yellen combated China’s “illegal, unfair and insulting” economic practices by weakening allies to put pressure on Beijing.
At her confirmation hearing, Ms. Yellen said China was “practicing practices that give it an unfair technological advantage” and that the government was prepared to use America’s “full range of instruments” to address them. One of her first challenges will be to honor the trade agreement that Mr. Trump has agreed with Beijing to review, including China’s failure to meet its obligations, and determine whether the United States should keep tariffs on $ 360 billion in Chinese goods.
In the long run, I plan. Yellen to tax proposals of Mr. Biden, which includes a higher corporate tax and tax increases for the rich, to help execute.
Me. Yellen plans to bring other major changes to the Treasury Department’s mission, including using its powers to assess the economic risks of climate change and create incentives to support clean energy technologies. She will also focus on promoting policies that reduce racial inequality.
“It is the responsibility of the Secretary of the Treasury to strengthen the US economy, promote widespread economic prosperity and promote an economic agenda that leads to long-term economic growth,” she said. Yellen said in a written response to lawmakers released Thursday.
Me. Yellen will be under pressure to quickly man a treasury division exhausted under her predecessor, Steven Mnuchin. Her deputy, Wally Adeyemo, will have to confirm the Senate and Mrs. Yellen will have to choose among secretaries to be in charge of international affairs, sanctions and domestic finance.
Earlier this month, the Treasury Department announced a chief of staff, Didem Nisanci, and a team of senior advisers, many of whom served in the Obama administration, to work with Ms. Yellen. On Monday, the Treasury announced a number of other staff members, including the appointment of Mark J. Mazur, a former senior Treasury official during the Obama administration, as Deputy Assistant Secretary for Tax Policy in the Office of Legislative Affairs.
Emily Cochrane contribution made.