US President-elect Joe Biden said his economic team is working on a plan to support families and businesses weather the current crisis . ©AFP CHANDAN KHANNA

 

Wilmington (United States) (AFP) – President-elect Joe Biden presented his economic team on Tuesday and pledged they will lead a plan to provide more relief for the faltering US economy, which his future Treasury secretary called an “American tragedy.”

The diverse group, that has women and minorities in key roles, is set to inherit the fallout from millions in jobs losses along with an ongoing wave of corporations laying off workers and small businesses shutting their doors amid a spike in Covid-19 cases.

Even with good news on possible vaccines, they may not come soon enough to prevent further damage.

“I know times are tough, but I want you to know that help is on the way,” Biden said at the event to introduce the “tested and experienced” team led by Treasury secretary nominee Janet Yellen.

He called on Congress to rapidly approve a “robust” new relief package, but said anything accomplished by the lame-duck legislature will not be enough.

“We need to act now and we need to work together,” Biden said, promising to “build a new American economy that works for all Americans.”

He said his team already is working on a new plan that can be launched “on day one” to revive the economy and create more than 18 million jobs through investments in infrastructure, clean energy and manufacturing.

– ‘American tragedy’ –

Yellen previously made history as the first woman to lead the Fed, and would do so again if confirmed as the first female Treasury secretary.

She is well-regarded for navigating the central bank through the aftermath of the global financial crisis, and said the world’s largest economy is facing another “historic” crisis that is hitting the most vulnerable people the hardest.

Yellen warned that “inaction will produce self reinforcing downturn causing yet more devastation.”

“So many people struggling to put food on the table and pay bills and rent. It’s an American tragedy,” she said.

The event came hours after a bipartisan group of legislators made a renewed push for another stimulus package to help the faltering US economy.

Congress has been deadlocked for months on approving another spending bill to aid the economic recovery, but Democratic Senator Joe Manchin said “It’s inexcusable for us to leave town without an agreement.”

“It’s not the time for political brinksmanship,” he told reporters.

The $908 billion proposal represents a compromise with a much smaller price tag than previous plans, and includes extended unemployment benefits, loans for small businesses and help for struggling state and local governments.

Outgoing Treasury Secretary Steven Mnuchin on Tuesday reiterated his support for forging a compromise, although he said it should be a limited package.

“I will continue to work with Congress,” Mnuchin said. “I urge Congress to pass something quickly.”

The goal is to enact a successor to the $2.2 trillion CARES Act after its main provisions expired earlier this year.

But without support from Republican Senate leader Mitch McConnell, the bill will face a tough fight for approval in the final weeks of Donald Trump’s presidency.

Mnuchin said he spoke to McConnell earlier Tuesday and will speak later with Democratic House Speaker Nancy Pelosi regarding a budget deal to avert a government shutdown on December 11, though they also will discuss a possible stimulus plan.

In a joint appearance with Mnuchin Tuesday before the Senate Banking Committee,  Federal Reserve Chair Jerome Powell again said more aid is needed to support the economy.

And in an apparent response to deficit hawks, he stressed that the “risk of overdoing it” is far outweighed by the risk of not doing enough to help the economy.

“Additional fiscal relief would really help to guard against” a worse downturn, Powell said.

– Biden’s team –

Other nominees for Biden’s economic team include Nigerian-born Wally Adeyemo, the first African American in the role of deputy Treasury secretary.

Neera Tanden, president of liberal think tank Center for American Progress, was picked to head the Office of Management and Budget. If confirmed, she would be its first South Asian leader, but she is a controversial choice who faces oppositions from conservatives and progressives.

Cecilia Rouse, the dean of the Princeton School of Public and International Affairs, was tapped to chair Biden’s Council of Economic Advisors and would be the first African American in that post.

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.