by James Rickards
Daily Reckoning
Today, Treasury Secretary-nominee Janet Yellen addressed the Senate Finance Committee during her confirmation hearing.
In her statements, she argued that major fiscal stimulus is justified to support the economy while the pandemic still rages.
She stressed the need to address income inequality and pledged support for the incoming Biden administration’s climate change policies.
In other words, she plans to support large amounts of government spending to stimulate the economy.
She acknowledged that debt is a potential problem. “But,” she added, “right now, with interest rates at historic lows, the smartest thing we can do is act big. In the long run, 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.”