Janet Yellen, U.S. Treasury Secretary, recently countered criticisms over President Biden’s economic and fiscal policies during her visit to Chicago. This trip came just a few days after Trump’s success in the Republican 2024 presidential nomination race. Yellen attempted to reverse Biden’s low voter approval ratings for his handling of the economy by highlighting growth in incomes and decrease in inflation. She explained the core elements of “Bidenomics” which include the $1.9 trillion COVID-19 rescue package, a $1.2 trillion bipartisan infrastructure bill, investments in semiconductors and research, and a clean energy and healthcare law. Yellen emphasized that Biden’s economic strategies are not ‘trickle-down economics’ but investments intended to stimulate growth and development.
Yellen’s Take on Bidenomics
Janet Yellen, during the Economic Club of Chicago event, appreciated the expansive set of policies and investments made under Biden’s administration. Hailing them as the most extensive efforts for economic growth and streamlining the middle class, she stated, “Bidenomics” has strategically placed the middle class to steer the economy once again.
Impact of Biden’s Policies
Biden’s spending has led to the U.S. economy recovering from the pandemic, recording historically low unemployment rates. This, she pointed out, has been the ‘fairest’ recovery on record, benefitting middle-class Americans and demographics groups like Black and Hispanic Americans.
Trump’s Tax Reforms vs. Biden’s Approach
Janet Yellen added contrast to Trump’s tax reforms and Biden’s economic strategy. She criticized Trump’s 2017 Republican-supported tax cuts for increasing the U.S. deficit and emphasizing tax cuts for corporations and top earners. Yellen underscored Biden’s commitment not to raise taxes on those earning under $400,000 annually.
Apart from counter-attacking the previous government’s fiscal policies, Yellen pointed out inflation concerns. She laid emphasis on the recent decline in inflation rates and vowed to publicize Biden’s economic achievements.
Public Perception and Impact on Forex
Low unemployment rates, unfortunately, have been taken for granted by a section of the public. However, the dwindling inflation rates and recovery of the economy can positively impact the trading market. A strong U.S. economy with low inflation and high employment rates could strengthen the USD in Forex trade, influencing currency correlations.