|
|
|
Yellen expected to pass further fiscal stimulus
|
|
|
|
Top Stories |
 |
|
|
|
IANS | 01 Dec, 2020
US President-elect Joe Biden is poised to choose Janet Yellen as his
Treasury Secretary and top cabinet official in-charge of the US economy,
as it faces slow recovery from the shock of the coronavirus pandemic.
Assuming
that she is confirmed by the Senate, Yellen will be the first woman to
serve as Treasury Secretary in the institution's 231-year-old history.
The
former Fed Chairwoman has called for opening government spending taps
to revive an economy racked by the Covid pandemic and is expected to
urge the Congress to pass further fiscal stimulus. Given that most
market participants were already expecting the Fed to remain
accommodative for an extended period of time, the thought of a
Yellen-Powell duo was not quite the gut punch for the dollar or
short-dated yields, the report said.
According to a report by
Motilal Oswal, Biden's move to choose Yellen for the Treasury role will
bring a steady hand and a well-known figure to the tiller of the US
economy, but her nomination also reflects his desire to finely balance
demands from the moderate and progressive wings of the Democratic Party.
Yellen led the Fed through a tightening cycle as the central
bank tried to normalize its monetary policy in the latter stages of the
recovery from the financial crisis.
The former Fed Chair was
considered to be among the more dovish monetary policymakers, but the
interest rate rises under her watch were later judged to be excessively
hawkish by the US central bank, which found that unemployment could fall
to far lower levels before triggering inflation.
Even within
the Fed, there was a division between "hawks" worried about inflation
and "doves" who insisted that inflation wasn't a threat in a depressed
economy, and that fighting the depression should take priority. Yellen
was one of the leading doves — and that some market participants had
even termed her the most accurate forecaster among Fed policymakers, the
report said.
Yellen will most likely first look to tighten its
coordination with the US Federal Reserve repairing recent frictions
though observers say she will be careful to avoid any specific move that
could trigger a wave of Republican protests
After winning the
Senate confirmation, Biden in coordination with Yellen will be deciding
how to proceed with several emergency Fed lending facilities backed by
Treasury money and authorised by Congress through the Cares Act, after
outgoing Treasury Secretary Steven Mnuchin announced he would sunset
them by year-end.
The Treasury said it plans to move that
unspent money into its general account -- from where it cannot be
released without congressional approval. Congress had authorized those
funds to go into the Treasury's Exchange Stabilisation Fund, over which
the secretary otherwise has substantial discretion.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
84.35
|
82.60 |
UK Pound
|
106.35
|
102.90 |
Euro
|
92.50
|
89.35 |
Japanese
Yen |
55.05 |
53.40 |
As on 12 Oct, 2024 |
|
|
Daily Poll |
 |
 |
Do you think Indian businesses will be negatively affected by Trump's America First Policy? |
|
|
|
|
|
Commented Stories |
 |
|
|
|
|
|
|
|