What Janet Yellen Doesn’t Know
A premature concern about U.S. debt levels could hurt the economy.
Most qualified Treasury nominee ever.
Photographer: Andrew Harrer/Bloomberg
Janet Yellen, President-elect Joe Biden’s reported pick as Treasury secretary, is surely one of the most qualified nominees for the job in history. Not only has she been chair of the Federal Reserve and the White House Council of Economic Advisers, but she also enjoys widespread bipartisan respect, which will benefit her in coming negotiations over Covid relief. The markets are right to be impressed.
At the same time: Her priorities in her previous jobs will not carry over, nor should they, to her next one. Yellen has been less concerned with full employment, and more with the long-term debt, than is ideal right now. She might shift the conversation in Washington in unhelpful ways.