U.S. Treasury Secretary Janet Yellen said on Wednesday that the stimulus spending bill signed into law by President Joe Biden to help the U.S. recover from the Covid-19 pandemic may have contributed “a little bit” to the country’s subsequent inflation woes. Influence.
However, in an interview with CNBC’s “Money Movers” before leaving office, Yellen said that the widespread rise in prices that hurt the Democratic government was mainly a “supply-side phenomenon” caused by the epidemic itself.
“There are huge problems with the supply chain,” she said, adding that shortages of key commodities were “starting to push prices up significantly.”
Yellen said she believed the $1.9 trillion COVID-19 relief bill and other spending were necessary and did not answer directly when asked if she had any regrets about it.
Instead, she urged Americans to remember that the pandemic was “out of control” when Biden took office, with thousands of people dying from the virus every month and high unemployment threatening livelihoods.
“It’s really important to spend money to alleviate this pain,” she said.
Yellen, 78, who led the Treasury Department during Biden’s four-year term, will be replaced by Scott Bessent, a hedge fund executive picked by President-elect Donald Trump.
Yellen said Bessant’s extensive market experience would be a “very helpful background” for a candidate seeking to run the agency responsible for managing the nation’s financial security.
“I’m pleased to see someone with experience will take over, if confirmed by the Senate,” Yellen said.
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