Yellen to Highlight Biden’s Economic Recovery Efforts in Chicago Speech

Summary

  • The US Treasury Secretary Janet Yellen is set to address the Economic Club of Chicago, outlining the speed and fairness of the economic recovery during the COVID-19 pandemic.
  • She will attempt to draw a comparison between the current administration’s successful enactment of the $1.2 trillion infrastructure law and semiconductor investment, and the previous administration’s failure to pass major infrastructure legislation.
  • In addition, she will highlight the hundreds of billions of dollars put into clean energy tax breaks under the Biden administration.
  • The persistent inflation that has been a hurdle in Biden’s economic efforts is now beginning to ease.
  • Yellen also anticipates a rise in financial confidence amongst Americans as wages increase faster than prices.

Yellen’s Address

Janet Yellen is scheduled to deliver a speech to the Economic Club of Chicago this Thursday. She will argue that the economic recovery post-pandemic has been faster, fairer and far more transformative than previous economic upswings, according to a late-night Sunday statement by the Treasury.

A Comparison of Administrations

An overview of Yellen’s speech suggests she will compare the Biden administration’s execution of the $1.2 trillion infrastructure law and significant investments in semiconductors with the previous administration’s failure to implement any major infrastructure legislation. Yellen will underscore that “our infrastructure has deteriorated over several decades. There was no concrete action plan to rectify it during the Trump administration, but this administration has made commendable strides.”

Yellen previously praised Biden’s investment legislation during her visits to North Carolina and Boston. Now, she will take this to the next level, directly comparing Biden’s work to former President Donald Trump’s tenure.

The Impact of Inflation

The persistent inflation challenges, which have had an impact on voter perception of Biden’s handling of the economy, are showing signs of easing. Yellen believes that as wage hikes eclipse price increases, Americans will start to feel more financially secure. This sentiment is mirrored in the consumer sentiment survey from the University of Michigan, which saw its highest level in two and a half years in January.

Upon completing her engagement in Chicago, Yellen will head to Milwaukee on January 26. She will tour a worker training facility, part-funded by the $1.9 trillion American Rescue Plan Act signed by President Biden in response to the COVID-19 pandemic.

Given these factors, traders can anticipate potential shifts in the forex market, particularly regarding assets tied to the US economy and infrastructure investments.

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