Stocks Boosted by Yellen’s Push for Big Stimulus Package

Mandatory Credit: Photo by Alex Brandon/AP/Shutterstock (11747575al)Treasury Secretary Janet Yellen listens as President Joe Biden speaks about the economy in the State Dinning Room of the White House, in WashingtonBiden, Washington, United States - 05 Feb 2021.
Alex Brandon/AP/Shutterstock / Alex Brandon/AP/Shutterstock

Stocks were up this morning, following Treasury Secretary Janet Yellen’s remarks yesterday on CNBC on the need to push for the $1.9 trillion American Rescue Plan.

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Yellen told CNBC in an interview yesterday that a “big package” of stimulus is necessary to help the economy stage a full recovery.

“I think the price of doing too little is much higher than the price of doing something big,” she said on CNBC’s “Closing Bell.”

In defending the stimulus package, Yellen told CNBC that it could help the U.S. get back to full employment in a year, echoing President Biden’s statement earlier this week.

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“We think it’s very important to have a big package [that] addresses the pain this has caused — 15 million Americans behind on their rent, 24 million adults and 12 million children who don’t have enough to eat, small businesses failing,” Yellen told CNBC.

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Earlier this week at a CNN town hall, President Biden addressed the state of the economy and the American Rescue Plan that could “create seven million jobs this year,” according to his remarks.

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“We can come back — we can come roaring back.  It’s estimated that if we — by most economists, including Wall Street firms, as well as — as — as, you know, think tanks — political think tanks — left, right, and center — it is estimated that if we pass this bill alone, we’ll create seven million jobs this year.  Seven million jobs this year,” Biden said on CNN.

Asked about the $1400 stimulus checks included in the relief package, Yellen told CNBC, “You know, there’s so much pain in this economy. I think these checks really will provide relief and they’ll help jump-start our economy, giving people money to spend when we can get out again and go back to our former lives. So you know, there’re a lot of families that are operating on the margin. And I think these checks will really help them.”

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.
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