The next is a transcript of an interview with Treasury Secretary Janet Yellen that aired Sunday, February 7, 2021, on “Face the Nation.”
MARGARET BRENNAN: We wish to go now to the previous Fed chairwoman and new Treasury Secretary, Janet Yellen. She joins us in Washington. Good morning to you, Madam Secretary.
TREASURY SECRETARY JANET YELLEN: Good morning and thanks a lot for having me.
MARGARET BRENNAN: You understand, the U.S. remains to be 10 million jobs in need of the place we have been earlier than this pandemic. Many individuals have stopped searching for work. Is the roles market stalling?
SEC. YELLEN: Effectively, I am afraid that the job market is stalling. We noticed that in Friday’s employment report, simply 6,000 personal sector jobs created, 49,000 general, and that is after a month through which we really noticed job loss. So, yeah, now we have 10 million folks unemployed. 4 million have dropped out of the labor market and one other two million are working half time who actually would really like full time work. So we have- we’re in a deep gap with respect to the job market and an extended strategy to dig out.
MARGARET BRENNAN: Particularly the unemployment price for women and men is comparatively related. However the president’s financial adviser, Jared Bernstein, stated this previous week the variety of girls who’ve left the workforce is of “nice concern” and weird in a recession. (00:01:24)
What’s driving that and the way do you get girls again into the workforce?
SEC. YELLEN: Effectively, you already know, girls actually are- many face simply an unimaginable state of affairs through which they’ve youngsters they should handle who weren’t at school and can be going through growing calls for on the job. And plenty of, over two million, have dropped out of the labor power as a result of it is so onerous to handle that- that battle. And the package deal, the American Rescue package deal that President Biden has proposed actually addresses the issues that girls face. It locations large emphasis on getting our faculties open safely, getting youngsters again into college, offering paid household and medical depart throughout this disaster so that girls do not have to go away their jobs after they’re confronted with well being points or household points that they’ve to deal with. There’s emphasis on offering extra childcare and- and funds, tax credit expanded for youngsters to assist households deal with these wants. And I feel that is actually essential to get girls again to work. They’ve confronted a- a disproportionate burden due to this disaster, particularly low wage girls and girls of colour.
MARGARET BRENNAN: These emergency paid depart provisions would expire in September. Throughout your affirmation hearings, you talked concerning the US needing to make these extra everlasting, basically to remain aggressive with the remainder of the developed world. Is getting the US to undertake a authorized mandate for expanded paid depart and childcare your final aim?
SEC. YELLEN: Effectively, it is definitely one thing that President Biden is involved in and, you already know, the present package deal that he is proposed, the American rescue package deal, is meant to take care of the speedy disaster, the financial disaster and the healthcare disaster. However past that, he appears ahead to proposing concepts to- to deal with lengthy standing challenges that our financial system has confronted. And leveling off and even decline in girls’s labor power participation price as a result of they do not have entry universally in the US to paid household and medical depart and childcare is definitely one thing he’ll wish to deal with. And he’d wish to work with members of Congress to see if one thing might be formulated to deal with these wants.
MARGARET BRENNAN: That appears like a sure sooner or later. Let’s discuss now.
SEC. YELLEN: Sure.
MARGARET BRENNAN: On this present rescue package deal, who- what ought to decide who’s eligible for a stimulus test? Ought to or not it’s your- your 2019 earnings stage or your unemployment standing?
SEC. YELLEN: Effectively, you already know, President Biden desires to ensure that the- the funds that he is proposed, $1,400 hundred funds to make good on the entire $2,000 pledge, goes to households that basically want it, which are struggling. And naturally, it should not go to very well-off family- households that do not want the funds and have not been onerous hit by the disaster. But when you consider an elementary college trainer or policeman making 60 or $ 65,000 a yr, it definitely appears acceptable that they will use that assist to deal with the additional burdens from the pandemic. So he is discussing the suitable cutoffs and phase-ins with members of Congress and is open to negotiating on these. However there are numerous households which are scuffling with decrease earnings and need- want these funds.
MARGARET BRENNAN: You understand, sending folks checks within the mail although, the criticism is that that is extra about politics than economics. A few of your fellow economists have been very important. Stanford’s John Cogan claims 70% of stimulus funds from final yr have been both saved or used to pay debt. Mark Zandi of Moody’s, who- who the President typically references, stated stimulus checks aren’t the simplest kind of assist and stated a lot of it goes to households that do not want the funds. Provided that, how do you justify writing these checks?
SEC. YELLEN: Effectively, it has to go to folks and households that do want the cash and people are decrease earnings households, and we have to ensure that the cut-offs are acceptable in order that households which are doing very well perhaps have seen their inventory portfolios rise and make numerous earnings and have not misplaced their jobs, these households should not be getting it. There’s a lot more–
MARGARET BRENNAN: What’s your flooring and ceiling on that?
SEC. YELLEN: –targeted aid additionally. Effectively, I- I haven’t got specifics for you immediately. These are issues that President Biden is discussing with members of Congress and is open to reviewing what’s- what’s acceptable. However he’s dedicated to offering the $1,400 of funds to those that qualify.
MARGARET BRENNAN: However there is not any jobs creation program in right here. The president says he desires that huge infrastructure invoice to be subsequent. And- and job creation is what we have to see. Do not you danger spending your political capital now when that you must create jobs on this subsequent invoice?
SEC. YELLEN: Effectively, there might be one other invoice that addresses job creation by way of infrastructure growth, by way of funding in folks, in schooling and coaching, addresses local weather change, improves the competitiveness of our financial system and is designed to create good jobs with good pay that contain create- careers for folks. However proper now, this package deal will do an enormous quantity to create jobs. The spending it is going to generate goes to result in demand for staff, assist put folks again to work, particularly once we can get vaccinations and the general public well being state of affairs to the purpose the place the financial system can start to open up once more. (00:08:21) And it supplies assist and aid. And, you already know, I might level out, it contains help to state and native governments. We have seen already 1.3 million staff fired off state and native payrolls due to shortfalls that they’ve in revenues. They usually have- have mandates to stability their budgets. And this plan supplies funds for state and native governments to have the ability to re-employ and dangle on to their first responders, policemen, firemen, different important staff.
MARGARET BRENNAN: Rapidly, earlier than I allow you to go, there’s been some wild swings within the value of GameStop. Are markets functioning correctly?
SEC. YELLEN: Effectively, you already know, we actually have to look intimately to know what occurred in those- in these shares during the last couple of weeks. I- I known as a gathering final week of high regulators. The S.E.C. has promised to provide a report that may give us a greater factual understanding of precisely what occurred. And I feel we should not be drawing coverage conclusions till we perceive what occurred. However I’d say that the core infrastructure of the markets, the plumbing, skill to commerce, clearing settlement, these infrastructures carried out properly. However we have to ensure that traders are adequately protected, that they perceive the dangers, and that now we have honest and environment friendly markets. And we’ll be wanting into all of that.
MARGARET BRENNAN: Madam Secretary, thanks to your time. We’ll be proper again with much more FACE THE NATION. Stick with us.