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As we prepare for a new administration to enter the White House come January 20, 2021, there are going to be some new faces that will emerge in the midst of the stimulus talks.
Assuming that lawmakers do not come to an agreement before inauguration day, one of the key players that will emerge is Janet Yellen.
She is the former Federal Reserve Chair and is known for her work at the federal of reserve during the 2008 financial crisis.
Yellen is believed to be President-elect Joe Biden’s Treasury Secretary pick.
She has come out with explicit support of a large stimulus package in the past.
“While the pandemic is still seriously affecting the economy, we need to continue extraordinary fiscal support,” Yellen said back in October.
“We need support for the economy from both monetary and fiscal policy. Monetary policy has already done a huge amount.”
We already know that Biden supports a huge stimulus deal that could be valued around $3 trillion so one would think that Yellen would be on board as well.
But some economist have heard that Yellen would be okay with pushing for a “speedy bill.”
A speedy bill would most likely be a much smaller stimulus deal and something a lot closer to the “skinny bill” that Republicans have been focusing on.
A spokesman for Joe Biden has previously pushed back that Biden would support a quick relief bill if it meant passing a smaller deal that does not address Democrat’s priorities.
But I don’t think that anyone knows for sure where the Biden administration will stand come January.
It’s one thing to want a huge stimulus package and quite another thing to stick to that position in the face of insurmountable political opposition — especially if you are a new president trying to start things off on the right foot.
If Yellen comes in with the mentality of passing something quick, at least initially, she could be the spark needed to get some immediate relief out.
After negotiations with Pelosi and other members of the government such as Treasury Secretary Steve Mnuchin and Senate Majority Leader Mitch McConnell have been deadlocked, perhaps a new face in the mix will help propel things forward.
This could be especially true if Pelosi is aware that Yellen does support a larger package, just further down the road.
This approach could make a lot of sense that is in line with what some prominent economists are forecasting.
For example, “A new policy memo by EPI Director of Research Josh Bivens recommends Congress provide debt-financed fiscal support of $2 trillion between now and the middle of 2022, and then continue support on the order of $400 billion annually between then and the end of 2024, with a slow phaseout of this aid thereafter.”
If the individuals leading the stimulus talks can get on board with a plan that is focused on more long-term relief, it could possibly lead to smaller relief getting to Americans quicker.
That is what I suspect will happen, especially if Republicans maintain control of the Senate.
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Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. Since 2014, his content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.