Treasury Secretary Janet Yellen issued a stark warning about the economy and delivered what appeared to be a veiled endorsement with just over forty days to go before the presidential election.
In an op-ed written in the Wall Street Journal, the top economic official signaled the U.S. is on the right economic path and touted the policies implemented in the Biden administration over the last three and a half years. But she also warned the U.S. needs to stay on track.
‘Risks remain, but the data suggest that we’re on the path to a soft landing,’ Yellen wrote just days after the Federal Reserve announced its largest interest rate cut in more than sixteen years.
Yellen pointed out that inflation has come down significantly from its peak while the U.S. unemployment rate remains at a near historic low. She also argued economic growth has been strong.
‘Veering off course could jeopardize our economic trajectory,’ Yellen wrote.
Treasury Secretary Janet Yellen speaking about the state of the U.S. economy on September 19, 2024 in Washington, DC
‘Permanent tax cuts that are stacked toward the wealthy and are unpaid for would explode the federal deficit. Repealing investments in the industries of the future would stunt growth. And pursuing nontargeted, nonstrategic international economic policies would raise costs for Americans and cause global turmoil,’ she added.
The op-ed expressed Yellen’s support for keeping Democrats in the White House as the presidential election looms November 5 while eluding to Donald Trump economic proposals including a blanket 10 percent tariff on goods coming into the U.S.
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It comes as polling shows the economy is top of mind in the race between Vice President Kamala Harris and former President Trump as both candidates lay out diverging economic visions for the future for the U.S. on the campaign trail.
Harris has called for a series of economic policies ranging from expanding the Child Tax Credit as was done temporarily under the American Rescue Plan to giving $25,000 down payments for first time homebuyers and a controversial plan to ban price gouging to tackling higher grocery costs.
The vice president has called for tax increases on the biggest corporations and wealthiest Americans to help pay for her policy proposals.
Trump has pushed for the extension of the tax cuts passed during his first term in office which are set to expire at the end of next year. He has also proposed ending taxes on tips, social security and overtime.
Yellen did not mention policy specifics or either candidates by name, but she did note the vice president’s work in the Biden administration.
Treasury Secretary Janet Yellen’s op-ed warning the U.S. needs to stay on track or it could ‘jeopardize’ the country’s economic trajectory comes as the 2024 presidential election kicks into high gear. While Yellen did not mention Harris by name she included the vice president while writing about the Biden administration’s work on the economy and lowering costs
‘At this moment, our policy choices are crucial,’ Yellen wrote. ‘The president, the vice president and I believe we need investments that bring down costs and double down on our strategy for strong and broad-based long-term growth.’
Yellen acknowledged prices for energy, housing and health care remain too high and vowed their ‘top economic priority is lowering them.’
The Treasury Secretary pointed out the U.S. labor market recovered from the 2020 recession during the pandemic faster than it had from previous recessions, and the U.S. has outperformed other advanced economies in terms of economic growth and inflation cooling.
Yellen called for building on the investments already being made during President Biden’s term so far including the infrastructure law, CHIPS and Science Act and Inflation Reduction Act as well as expanding support for child care.
‘Our economic strategy has helped America weather hard events, from a global pandemic to the biggest war in Europe since World War II, and build toward the future,’ Yellen wrote. ‘Our administration is committed to sustaining and building on our progress.’
The op-ed comes as a series of recent polls show an extremely tight race between Harris and Trump in the final sprint before the election including in the seven battleground states that are likely to decide the election.
A CBS News poll found Harris does better among those who view the national economy positively right now.
Among likely voters who believe the economy is good, 88 percent support Harris. Among those who believe their personal finances are good, 64 percent back the vice president.
Despite the improvements, many registered voters overall still do not believe things are good. Only 39 percent said conditions of the U.S. economy are good while 59 percent said they were bad.