On December 1, last year, President-elect Joe Biden, former Fed Chairman Janet Yellon, who was appointed as the first finance minister of the next administration’s Wilmington, Delaware, announced the election of the Biden government’s economic team. He is speaking at the’Queen Theater’ theater. Wilmington = AFP Yonhap News
On the 19th (local time), former Federal Reserve Chairman Janet Yellen, who was appointed as the first finance minister of the next US administration, Joe Biden, reiterated his will to boost the economy with active fiscal spending. Thanks to this, the New York stock market was strong.
Nominee Yellen said at a hearing on the approval of the Senate Financial Committee on the same day that the next government “will act boldly” regarding financial expenditures to overcome the novel coronavirus infection (Corona 19). This is foreshadowing the proposal of a large additional relief package. Earlier on the 14th, elected Biden announced an additional stimulus plan worth $1.9 trillion (about 2,100 trillion won).
At the hearing, nominee Yellen said, “Neither president-elect and me are proposing such a relief package without consideration of the burden of state debt.” Explained. “I believe the benefits will far exceed the cost, especially if we help those who have struggled for a long time.”
It was also confirmed that even if the tax increase was promoted, it was not immediately. He said, “We want to abolish some of the 2017 tax cuts that benefit the highest income brackets and large corporations,” he said. However, that period will come after overcoming the economic downturn caused by Corona 19. Biden pledged to raise the corporate tax rate, which the Trump administration reduced from 35% to 21% in 2017, to 28%.
The nominee Yellen also said he would not pursue a’weak dollar’. “The United States is not looking for weak dollars to gain a competitive advantage,” he said. “It should be opposed to any attempts by other countries to do so.” “I believe in the exchange rate determined by the market. “The value of the US dollar and other currencies must be determined by the market.”
He then warned, “We will try to stop all attempts by foreign governments to artificially manipulate the value of the currency in order to gain an advantage in trade.”
Interpretations were mixed. Bloomberg reported that nominee Yellon indicated a return to the “strong dollar” policy stance that had been passed down since the former administration of Bill Clinton, but Reuters said it was difficult to say that it was advocating the strong dollar. The Trump administration has been pushing a weak dollar policy to strengthen export competitiveness. Finance Minister Stephen Manusin once said that “an overly strong dollar hurts the US economy.”
Nominee Yelan has also launched an onslaught on China. China is using illegal subsidies and dumping, intellectual property theft, trade barriers, etc. “We are weakening American companies,” he said. “We have to fight China’s unfair and illegal practices.” He also said, “China is clearly our most important strategic competitor,” and said, “It is important to cooperate with our allies” to compete with China.
The Democratic Party predicted that as early as the 21st, at the Senate plenary meeting, a proposal to ratify the nominee for Yellen would be passed. If the approval is passed, nominee Ylan will become the first female finance minister in US history. He is also the first person to serve as the Chairman of the White House Economic Advisory Committee, Fed Chairman, and Finance Minister.
In the New York stock market, the leading index rose on the back of the Yellan nominee’s willingness to boost the economy. On that day, the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 30,930.52, up 116.26 points (0.38%) from the previous year. The Standard & Poor’s (S&P) 500 index ended at 3,798.91, up 30.66 points (0.81%) from the battlefield, while the technology stock-oriented NASDAQ index closed at 13,197.18, up 198.68 points (1.53%).
It is analyzed that expectations of economic stimulus and ease of tax burden on large technology companies had a positive effect.
Kwon Kyung-seong reporter [email protected]
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