Yellen to Call for Strong Stimulus

Ibeth Rivero

Biden’s package include about $1 trillion in direct transfers to households, around $440 billion to aid small businesses and $415 billion to bolster the current vaccination campaign.

Janet YellenAccording to Reuters, President-elect Joe Biden’s nominee for Treasury Secretary, Janet Yellen, will tell the Senate Finance Committee that the US government must take strong action with its next coronavirus relief package, making a reference to Biden’s proposed $1.9 trillion stimulus package.

“Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big,” it says in Yellin's prepared opening statement. “I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time.”

Biden’s plan has attracted criticism given the amount of debt the United States currently holds. However, some economists back the plan, claiming that current interest rate levels allow him to ramp up the debt levels even more.

Biden’s package include about $1 trillion in direct transfers to households, around $440 billion to aid small businesses and $415 billion to bolster the current vaccination campaign.

The United States is currently struggling to contain the spread of the virus, which so far has infected 24,626,441 individuals and killed 408,623 of them.

Being the most affected country in the world, the government’s plan to curb the spread of the COVID-19 disease may be crucial for economic recovery. Biden’s plan is to vaccinate 100 million people in the first 100 days of his presidency, which according to Dr. Anthony Fauci is “absolutely a doable thing”.

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“Let me be clear, I’m convinced we can get it done. And this is a time to set big goals… because the health of the nation is literally at stake,” commented Biden about the new vaccination plan.

The current vaccine rollout is considered chaotic, which pushed Biden to release a five-step plan that includes, among other things, establishing additional vaccination sites and working with states to clarify eligibility for vaccination.

Biden’s plans for Wall Street are not seen with favor by investors, as his team recently confirmed its intention to nominate Gary Gensler and Rohit Chopra as chair of the Securities and Exchange Commission and chair of the Consumer Financial Protection Bureau, respectively. Those nominations are frowned upon because some interpret Biden’s picks as a way of pandering to the Far Left. Now that the Senate will be controlled by the Democrats, some expect that anti-Wall Street Sherrod Brown will be appointed as chair of the Senate Banking Committee.

Biden is set to be inaugurated tomorrow, and security measures have been ramped up since the assault on the Capitol. Meanwhile, outgoing President Donald Trump is currently focused on issuing pardons.

By 9:24 GMT, the US Dollar Index dropped by 0.14%, falling to the 90.65 level.

Ibeth Rivero

Ibeth contributes daily market commentary in both English and Spanish (both of which she speaks fluently) and she also manages the DailyForex mobile app to ensure that traders around the world are getting important market updates in real time.

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