Yellen: US could reach full employment next year if Congress passes Biden’s stimulus plan

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Biden’s plan, which the secretary said is “big enough to address (the) full range of needs” facing the country’s economy, includes a wide range of immediate assistance for struggling families, such as $1,400 stimulus checks and extended unemployment, nutrition and eviction aid, and longer-term changes, such as a $15 hourly minimum wage — though the President recently conceded that a minimum wage increase might not be included in the final proposal due to the Senate’s rules.

Treasury Secretary Janet Yellen said Sunday the US could see full employment next year if Congress passes President Joe Biden’s proposed stimulus package, but warned the country’s unemployment rate would remain elevated over the next few years without the additional $1.9 trillion in federal support.

“I would expect that if this package is passed that we would get back to full employment next year,” Yellen told CNN’s Jake Tapper on “State of the Union.”

“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,” she added. “It would take (until) 2025 in order to get the unemployment rate down to 4% again.”

Source: CNN