Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Yellen denies report that she pushed for a smaller COVID-19 relief package

Published 06/04/2022, 05:10 PM
Updated 06/04/2022, 07:45 PM
© Reuters. FILE PHOTO: U.S. Treasury Secretary Janet Yellen looks on during a U.S. House Committee on Financial Services hearing on the Annual Report of the Financial Stability Oversight Council, on Capitol Hill in Washington, DC, U.S. May 12, 2022. Graeme Jennings/

By Kanishka Singh and Andrea Shalal

WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen on Saturday said she never pushed for cuts to President Joe Biden's $1.9 trillion American Rescue Plan, rebutting a media report in which a biographer was quoted as saying she favored scaling it back to avoid inflation.

"I never urged adoption of a smaller American Rescue Plan package, and I believe that ARP played a central role in driving strong growth throughout 2021 and afterwards," Yellen said in a rare response to a media report.

The White House issued a statement of its own, arguing that the American Rescue Plan helped engineer a strong U.S. recovery and that higher food and energy prices were not the result of the stimulus package.

Yellen is expected to face tough questions about inflation during two congressional hearings next week. Lawmakers will also likely ask about her admission last week that she was "wrong" in the past about the path inflation would take, citing unexpected shocks such as Russia's invasion of Ukraine and China's COVID-19 lockdowns.

Bloomberg on Friday quoted an advance copy of a biography on Yellen, written by journalist Owen Ullmann, who said that her concern about inflation was why Yellen pushed officials - without success - to reduce the size of the stimulus package by a third before Congress passed the program.

The book is due out on Sept. 27.

Congress passed the American Rescue Plan a year ago and it was signed into law a year ago, marking a signature achievement of Biden's first year in office.

© Reuters. FILE PHOTO: U.S. Treasury Secretary Janet Yellen looks on during a U.S. House Committee on Financial Services hearing on the Annual Report of the Financial Stability Oversight Council, on Capitol Hill in Washington, DC, U.S. May 12, 2022. Graeme Jennings/Pool via REUTERS/File Photo

In her statement on Saturday, Yellen said that high inflation was now the Biden administration's top economic priority.

"We are committed to addressing it (inflation) by respecting the independence of the Federal Reserve and giving them the space to act," Yellen said on Saturday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.