Although recent economic data showed that the pace of economic recovery in the beginning of the year was faster than expected, U.S. Treasury Secretary Yellen defended the promotion of 1.9 trillion in an interview with CNBC on Thursday (18)USDThe stimulus plan is necessary. She believes that in order to fully recover the US economy, a large-scale assistance program must be promoted, so that full employment can be achieved within a year.
Although US retail sales and industrial production were better than expected in January, and US stocks also hit record highs, Yellen still defended the need for fiscal stimulus. She said: “Having a large-scale solution to deal with the suffering caused by the epidemic is extremely important. The price for not doing enough may be far greater than doing a little more.”
She said that compared with the level before the outbreak, the current unemployed population is still 9 million higher, and 4 million have completely given up looking for work. The latest data released on Thursday showed that the number of people applying for unemployment benefits for the first time last week unexpectedly increased to 861,000, which was higher than the peak of the 2007-09 recession.
Yellen expects that the Biden administration’s 1.9 trillionUSDThe stimulus bill will progress within two weeks. The U.S. House of Representatives is scheduled to vote on February 26 and then sent to the Senate for a vote. Democrats hope to complete the legislation before March 14 so that the additional unemployment benefits in the relief bill in December last year can continue to be paid.
Tax increases will be implemented slowly and gradually
Yellen also stated that any tax increase measures that the Biden administration may promote to fund stimulus spending will be implemented slowly and gradually over time; these proposed tax increases will be included in a large-scale plan later this year. And announced.
She explained that the so-called large-scale program will be investment expenditures over many years, including education and infrastructure.
Don’t worry about inflation and stock market valuation
Yellen is not worried that the expansion of government spending may push up inflation. “Inflation has been sluggish for ten years. Although there are risks in rising, institutions such as the Federal Reserve (Fed) have ways to respond. The greater risk lies in the epidemic. The permanent damage caused will have a lifetime impact on people’s lives and livelihoods.”
Yellen is also not worried about the overvaluation of the stock market. She said that in the ultra-low interest rate environment, indicators such as the price-to-earnings ratio are usually relatively high, but there are indeed “some areas that need to be very careful.”
Ye Lun did not specify which assets need to be paid attention to, but was asked about the new highBitcoin, Yellen said that we should ensureBitcoinWill not be used in illegal transactions, and investors are protected.
Maintain the Trump-era tariffs on China
Yellen revealed that the United States is also evaluating its strategy against China. She expects that Beijing will abide by its trade commitments and will maintain the tariffs imposed on Chinese goods by the former Trump administration at this stage.
She said: “At present, we maintain the Trump administration’s tariff measures unchanged… We will evaluate appropriate practices in the future.”
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