Treasury Secretary Yellen discusses the U.S. economy at The Economic Club of Chicago — 1/25/24

Treasury Secretary Yellen discusses the U.S. economy at The Economic Club of Chicago — 1/25/24

Introduction

Yellen's Background

Focus on the Middle Class

  • Yellen emphasizes the importance of a strong middle class for a thriving economy.
  • The Biden Administration has focused on policies that support and benefit the middle class.
  • The American Rescue Plan provided direct financial support to middle-class families, expanded child tax credits, and helped small businesses.
  • The administration has seen positive results, with strong economic growth, declining inflation, and increased purchasing power for middle-class Americans.

Investing in Infrastructure and Manufacturing

  • The Biden Administration has prioritized investments in infrastructure and manufacturing.
  • The bipartisan infrastructure law is a $1.2 trillion investment that will create jobs and improve access to clean water and high-speed internet nationwide.
  • The Chips and Science Act and Inflation Reduction Act are revitalizing American manufacturing, with over $600 billion in investments announced since the start of the administration.

Tax Policy and Fiscal Sustainability

  • The administration is focused on tax fairness and ensuring that the wealthiest individuals and corporations pay their fair share.
  • The IRS is being provided with additional resources to address tax evasion.
  • Yellen highlights the need to balance investments with fiscal sustainability and reduce the deficit through measures like raising taxes on corporations and closing the tax gap.

Future Plans and Challenges

  • Yellen acknowledges that there is more work to be done to support the middle class.
  • The administration aims to provide affordable child care, access to education and training, affordable housing, and retirement security.
  • Future plans include further infrastructure investments, support for American manufacturing, and tax reforms that benefit the middle class.

Q&A Session

  • Yellen addresses concerns about sentiment regarding the economy, highlighting improvements in inflation, strong labor market indicators, and positive economic growth.
  • She emphasizes the importance of managing inflation and continuing investments in the economy to support the middle class.
  • Yellen discusses the sustainability of the national debt and the administration's efforts to both invest and reduce the deficit through tax policy and IRS funding.
  • She addresses the revenue implications of the 15% minimum corporate tax and highlights the importance of tax fairness and closing the tax gap.

Conclusion

  • Yellen expresses gratitude for the opportunities to serve as both Fed Chair and Treasury Secretary.
  • She emphasizes the dedication and talent of the public servants she has worked with.
  • The session concludes with thanks and adjournment.

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