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Yellen, in an interview with CNBC, said details were still being
worked out on the infrastructure and clean energy package, which
would come on top of a $1.9 trillion coronavirus relief plan
that is now working its way through Congress.
She said it would include clean energy investments to fight
climate change and investments in education and training to
build the skill levels of American workers and boost U.S.
competitiveness.
"Certainly part of the package, the parts that are permanent,
will be paid for in order to not raise long-term deficits, but
we're still working on the details of the package."
The infrastructure, climate and education plan will probably be
proposed later this year and would involve spending over a
number of years, "and probably tax increases to pay for at least
part of it would probably phase in slowly over time."
Biden's $1.9 trillion COVID-19 stimulus package aims to ensure
that growth is strong enough to get back to full employment
faster than recent baseline estimates from the Congressional
Budget Office, which projected earlier this month that based on
current laws, it would take until 2024 to reach pre-pandemic
employment levels.
With the Biden stimulus plan and good progress on vaccines to
defeat the pandemic, "I think we could be back to full
employment next year," she said.
Yellen downplayed the potential risk of inflation from trillions
of dollars in new stimulus and infrastructure spending, saying
that inflation has been low for a decade and the Federal Reserve
has tools to deal with it.
"The greater risk is of scarring and people having this pandemic
take a permanent lifelong toll on their lives and livelihoods,"
if no further aid is provided, she said.
(Reporting by Andrea Shalal and David Lawder; Editing by Leslie
Adler and Aurora Ellis)
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