Yellen says U.S. Economic Performance 'Vindicates' Heavy COVID-Era Spending

U.S. Treasury Secretary Janet Yellen asserted that the strong performance of the U.S. economy validates the effectiveness of President Joe Biden’s $1.9 trillion American Rescue Plan Act implemented in 2021 to counter the COVID-19 pandemic’s impact. In her address to the U.S. Conference of Mayors, Yellen emphasized that the risks of underspending on recovery were significant and that the current economic indicators, such as robust GDP growth, declining inflation, the creation of four million more jobs than pre-pandemic levels, and a historically low unemployment rate, endorse the administration’s approach. She contrasted this recovery with the prolonged and challenging aftermath of the 2008-2009 financial crisis, highlighting the broader wage gains across different worker demographics and the reduced economic hardship for workers and families.