Yellen Defends Biden Economic Policies Amid Criticism

In her final address before leaving office, U.S. Treasury Secretary Janet Yellen defended the Biden administration's pandemic-era economic strategies, asserting that the stimulus measures were critical in preventing a severe economic downturn and preserving millions of jobs. Yellen acknowledged that while these policies may have contributed slightly to inflation, the overall benefits—including enhanced unemployment benefits and direct payments—vastly outweighed the drawbacks. She emphasized that inflation was primarily driven by global supply chain disruptions rather than government spending. Yellen pointed out that the U.S. economy has outperformed many advanced economies in recovering from the pandemic, with inflation decreasing more rapidly here than elsewhere. Critics argue that the spending overheated the economy, but Yellen maintained that the measures were necessary to avoid widespread hardship. The administration's policies, she argued, not only supported immediate demand but also helped workers return to jobs quickly, mitigating long-term unemployment risks.