Yellen, Debt, & Spending
Former Fed Chair, Janet Yellen, will testify before the Senate Finance Committee on Tuesday as it considers her nomination to be the next U.S. Treasury secretary
Her confirmation is all but assured, but that won’t stop big questions about spending and debt. In the past four years, U.S. government debt held by the public has increased by $7 trillion to $21.6 trillion. So where do we go from here…
- STIMULUS: President-elect Joe Biden on Thursday proposed a $1.9 trillion aid package that includes $1,400 stimulus payments to individuals, expanded jobless benefits and paid work leave, aid for schools and hard-hit small businesses, and a national vaccination program.
- HOUSE (& SENATE) DIVIDED: The Biden administration will contend with progressives who want even more spendin gand conservatives who say the government is tempting fate by adding to its swollen balance sheet
- UNKNOWNS: While economists on the left and right acknowledge the government has more capacity to borrow than once thought there are still two major unkowns. Is there a ceiling on the U.S.’s debt load and how the country will pay it back? Michael Boskin, a Stanford University economist, told the Wall Street Journal, “At some point we’ll start paying a price for this,”