On January 16th, outgoing US Treasury Secretary Janet Yellen warned that the next administration’s plan to extend the 2017 Republican tax cuts could disrupt financial markets and worsen the already challenging US fiscal outlook. The expected fiscal path under the current budget policy is fundamentally unsustainable, and failure to take action or actions that exacerbate the expected deficit could have terrible consequences, “Yellen said on Wednesday, in what could be her last speech during her tenure. In her speech at the New York Business Economics Association, Yellen stated that extending the tax cuts during Trump’s first term “could weaken our country’s strength, from the resilience of the US bond market to the value of the dollar, and even trigger a debt crisis in the future. She also stated that such ‘wrong economic decisions’ will affect the long-term economic prospects and impose a heavy burden on the next generation.
Scan code to share