Outgoing Treasury Secretary Janet Yellen strongly defended the Biden administration’s economic policies, highlighting the strength of the U.S. economy compared to its global counterparts. In what was likely her final speech in office, Yellen emphasized the country’s solid economic trajectory and its resilience against the most pessimistic projections from economists.
A Balanced Approach Not Just Inflation
During her address at the New York Business Economics Association, Yellen stressed that policy decisions always involve sacrifices, but highlighted that the Biden administration made prudent choices that placed the economy on a solid path. “Every policy decision involves trade-offs, but the decisions made by the Biden administration have been the right ones,” Yellen said, according to excerpts from her speech.
The Impact of Post-Pandemic Prices
Despite recognizing the drastic increase in essential product prices following the pandemic, Yellen defended the $1.9 trillion American Rescue Plan, which, according to her, alleviated significant economic hardship and enabled a quick labor market recovery. She stated that this effort mitigated the difficulties caused by the crisis, allowing the economy to get back on track quickly.

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The Labor Market as a Pillar of Recovery
One key point in her speech was the labor market’s strength and the rapid decline in unemployment rates. This decline helped the U.S. avoid the “labor damage” typically linked to long periods of joblessness. Yellen, a labor economist, stressed the importance of employment in preserving economic potential. Preventing labor damage is crucial for safeguarding the nation’s future economic growth.
The Rescue Plan and Its Critics
Throughout her tenure, Yellen defended the American Rescue Plan against criticisms of excessiveness, particularly considering the 2021 stimulus. Despite criticism linking the plan to rising inflation, Yellen emphasized its necessity. She argued that without the plan, the economic recovery would have been slower and more costly. Yellen warned that not implementing the plan could have led to more harmful long-term effects.
Focus on Future Economic Sustainability
Yellen emphasized that the goal is not just to address immediate challenges but ensure policies lay a solid foundation. The policies aim to ensure sustainable economic growth for the future, focusing on long-term stability. The Biden administration has prioritized employment and workforce recovery to avoid prolonged economic damage. They seek to prevent job scarcity or long-term recession from impacting the U.S. economy.
Final Reflection on the Administration’s Legacy
In her final speech as Treasury Secretary, Janet Yellen reflected on key economic decisions made during her tenure. Despite criticism, she expressed confidence in Biden’s policies, ensuring long-term recovery. Yellen believes these decisions will lead to a solid, equitable, and lasting recovery for the U.S. She remains optimistic about the country’s economic future, with a focus on resilience and growth.
