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

Introduction

• Sean Connelly introduces Janet Yellen, the United States Secretary of Treasury.
• Yellen is the first woman in this role and has extensive experience in academia and public service.

Yellen's Background

• Yellen was born in Brooklyn and attended Brown University and Yale for her economics degrees.
• She worked at the Federal Reserve Board and taught economics at Harvard and the University of California, Berkeley.
• Yellen served as the Chair of the Federal Reserve from 2014 to 2018 before becoming Secretary of Treasury.

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.