. . World News – USA – Janet Yellen excelled at big jobs. This will be the hardest yet.


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The Treasury Department candidate will face the tricky policy of making a strong recovery from the pandemic.

If Janet Yellen is confirmed as Treasury Secretary by the Senate, she will be one of the most accomplished people to take over the large office at 1500 Pennsylvania Avenue in the division’s 231-year history.

Few people in any time have served at the highest levels of economic policy with so long and with so much distinction. Among other things, she will be the first person to be the White House chief economist and head of the Treasury and the Federal Reserve. At the Fed, she played an important role in developing the longest economic expansion in American history, only interrupted by the pandemic.

Americans should hope that in the three years since she left government she has found plenty of peace of mind, because the job she is about to fill may be the toughest she has ever had.

Your greatest task will be to find your way through the difficult economy and even more difficult politics in order to achieve a strong recovery from the pandemic. A stalemate on Capitol Hill due to pandemic relief risks the economy slipping back into recession in the months before a coronavirus vaccine becomes widespread. If no agreement is reached before the inauguration of President-elect Biden in January, Dr. . Yellen will likely play an important role in trying to get lawmakers to come to an agreement.

The Secretary of the Treasury serves as the United States’ chief financial diplomat. In that role, she will face the unenviable task of reshaping a world economic system disrupted by the Trump administration’s trade wars and non-partisan distrust of China.

In a broader sense, the job of the finance minister is more complex than just acting as the country’s chief economist. Mrs. Yellen is being drawn into a wider range of policy areas and more intensive diplomacy and political maneuvers than before.

As important and powerful as the Fed is, it can in some ways resemble a university economics department rather than a fast-paced policy-making center. Mrs. Yellen, like her predecessors, had the advantage of being able to spend long hours analyzing the state of the economy, debating the best policy, and precisely articulating every word of public utterance.

Finance ministers, on the other hand, have their fingers on a wide range of domestic and foreign policy. In the last few weeks alone, the ministry announced that it would impose sanctions on North Korea and Iran, introduce plans for corporate taxation of pandemic bailout loans and, for reasons of national security, decide on the requirements for the sale of the TikTok social platform.

woman. Yellen is no stranger to high-level politics and international diplomacy, but if this is confirmed, she will seek more than ever to subdue both national and international rivals to the will of government.

A particularly interesting area will be the relationship between fiscal policy – tax and spending powers, which will soon fall partly under women. Yellen’s responsibility – and her earlier part of monetary policy – the power to adjust the money supply. These lines have become more blurry this year. The response to the pandemic was organized as a joint effort by the Treasury Department, which is allocating billions of dollars in capital to support debt markets, and the Fed, which is administering the programs and lending billions more from their own unlimited balance sheet to make them powerful.

So far, however, there have been clear divisions. The Fed was more inclined to structure the programs to help the economy more, but with a higher risk of the Treasury losing money, while the Trump Treasury was more cautious.

Meanwhile, the Fed is buying huge sums of government bonds and keeping interest rates near zero indefinitely to stimulate the economy – effectively giving the government carte blanche to contain the economic impact of the pandemic. It raises gnarled questions about how independent the central bank is, and should be, from the rest of the government in times of crisis.

woman. Yellen will approach these questions, which are shaped by the institutional values ​​of the Fed, where she began her career as a young researcher. She was president of the Central Bank’s outpost in San Francisco, vice chairman, and four years director. You and Jerome Powell, the current Fed chairman, were colleagues for many years. She entrusted him with much of the hard, nondescript work of overseeing the central bank’s operations.

When she and Mr.. . Powell has the regular breakfast and lunch that are typical of the residents of their work. It will be ironic that as an economist, she has a more conventional résumé for a Fed chairman, and he, a lawyer and former Wall Street and treasury official, has a more typical career history of a Treasury Secretary.

Nonetheless, expect it to advocate more liberal use of emergency credit facilities to support the economy while maintaining a relatively traditional view of the importance of the Fed’s independence and its ability to manage monetary policy without being challenged by political authorities will. A Treasury Secretary with less ties to the Fed could be more flexible about the roles of the two organizations.

With this in mind, the selection is made by woman. Yellen tells us something important about President-elect Biden’s priorities in putting his team together – especially the view that it’s not about dazzling and dazzling, but rather attributes like credibility, seriousness and stature. If confirmed, mrs. Yellen will take office in the midst of an economy, a polarized political environment and a frayed global economic system. She will need every ounce of these properties.

Janet Yellen, Joe Biden, United States Treasury Department, Federal Reserve System

World News – US – Janet Yellen excelled at big jobs. This will be the hardest yet.
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Ref: https://www.nytimes.com

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