Lawrence Lepard, an investment manager and economist, retweeted an article on US Treasury Secretary Janet Yellen stating that the US should not be settling for long, and slow recovery from the coronavirus pandemic.
She further believed that full employment could be achieved in 2022, given Biden’s Covid-19 stimulus package is implemented. Otherwise, there are risks for a slower rebound of jobs and the economy.
Yellen also believed that the job market is still stalling, and that low-wage earners, minority communities, and women were suffering from the coronavirus-induced job losses.
She added that the prolonged recovery and slowdown could lead to permanent damage. It is being cited that without Covid relief, it would take the US until 2025 to dig itself out of the labour market hole.
One of her key agendas also highlighted that US workers earning $60,000 per year should receive stimulus cheques as part of the White House’s proposed $1.9tn coronavirus relief package.
Although the Biden’s stimulus plan did not aim at job creation, Yellen added that spending would help create greater demand for workers.
She also pushed back former Treasury’s concerns over the package being too large and associated with big inflation risks.