The Strategist

Former Fed chief warns of risk of a longer recession

01/19/2021 - 02:50

Former US Federal Reserve Chair Janet Yellen, whom President-elect Joe Biden is set to appoint as Treasury Secretary, warned about the risks of a longer and more painful recession.

This will happen if the Congress fails to approve additional support measures and calls to take "sweeping action" to stimulate an economic recovery.

The Wall Street Journal reports that Yellen will address the Senate Finance Committee on Tuesday. It is up to that committee to approve her nomination.

"Economists don't always agree with each other, but I believe there is a consensus now. Without further action, we risk a longer, more painful recession right now, and long-term scars on the economy later," Yellen said in the prepared text of the report. 

"Over the next few months, we will need additional support to distribute vaccines, open schools, and help states support work of firefighters and teachers."