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Treasury Secretary Janet Yellen gave an optimistic outlook on employment for next year, stating that the U.S. could see full employment if President Joe Biden’s stimulus package passes. If the $1.9 trillion relief package doesn’t pass, she warns there could be elevated unemployment for the next few years.
“I would expect that if this package is passed that we would get back to full employment next year,” Yellen said on her CNN State of the Union appearance with Jake Tapper.
“The Congressional Budget Office issued an analysis recently, and it showed that if we don’t provide additional support, the unemployment rate is going to stay elevated for years to come,” Yellen said. “It would take (until) 2025 in order to get the unemployment rate down to 4% again.”
According to CNN, full employment is defined as employers having hired as many qualified professionals as they need, not that the unemployment rate is zero. Yellen said Biden’s package is “big enough to address (the) full range of needs” the economy is facing.
The House and Senate passed the budget resolution on Friday, which will allow Democrats to push through the massive coronavirus relief bill through a process called “budget reconciliation.” The bill is likely to be passed in late February or early March, without GOP support.
