Economics

Former Fed Leader Yellen Says Fiscal Support Vital for Economy

U.S. needs ‘more effective effort’ to control virus, she says
Savings depriving monetary policy’s ability to curb weakness

Former Federal Reserve Chair Janet Yellen discusses the need for global governments to employ carbon pricing to address climate change, U.S. fiscal policy, and the risks of secular stagnation. She speaks with Bloomberg's Tom Keene and Lisa Abramowicz on "Bloomberg Surveillance." (Source: Bloomberg)

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By Steve Matthews

October 19, 2020 at 1:59 PM UTC

Updated on

October 19, 2020 at 3:17 PM UTC

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The U.S. needs to provide further aid to unemployed workers and to state and local governments to support the recovery amid the virus-induced slump, former Federal Reserve Chair Janet Yellen said.

“While the pandemic is still seriously affecting the economy, we need to continue extraordinary fiscal support,” Yellen said in a Bloomberg TV interview Monday with Tom Keene and Lisa Abramowicz. “We need support for the economy from both monetary and fiscal policy. Monetary policy has already done a huge amount.”