Janet Yellen by Gerald R. Ford School of Public Policy University of Michigan licensed under CC BY-ND 2.0
If confirmed by the Senate, she will take over from current secretary Steven Mnuchin who took on the role in 2017. Yellen will be in charge of the US’s economic response to the pandemic.
Yellen is an economist who previously served as head of the Federal Reserve from 2014-2017 and was previously chair of former president Bill Clinton’s Council of Economic Advisers.
Commenting on Yellen’s expected appointment, US senator Elizabeth Warren, tweeted: “Janet Yellen would be an outstanding choice for Treasury secretary. She is smart, tough, and principled.
“As one of the most successful Fed chairs ever, she has stood up to Wall Street banks, including holding Wells Fargo accountable for cheating working families.”
Prior to her role as Fed chair, Yellen was also president and chief executive officer of the Federal Reserve Bank of San Francisco from 2004 to 2010, and helped aid the country’s economic recovery from the financial crisis in 2008.
Gary Cohn, an economic advisor to current president Donald Trump, tweeted: “Having had the opportunity to work with then-chair Yellen, I have no doubt she will be the steady hand we need to promote an economy that works for everyone, especially during these difficult times.”
Earlier this month, ratings agency Moody’s said the incoming Biden administration will have to deal with the highest US debt and deficit since the Second World War.
Last year, the country’s deficit was more than $3trn, tripling the previous year’s shortfall due to Covid-19 aid, as US government expenditure topped $6trn.
