US Treasury Sec. Yellen: Prolonged downturn, slow recovery will take fiscal toll

US Treasury Secretary Janet Yellen said on Monday that fiscal stimulus needs to ensure people's lives, livelihoods are not permanently scarred by pandemic, as reported by Reuters.

Additional takeaways

"Success for stimulus would mean getting back to pre-pandemic levels of unemployment, restoring service sector jobs."

"US President Joe Biden's recovery plan will aim to ease pockets of misery that won't be reached by targeted aid."

"Prolonged downturn, slow recovery will take a fiscal toll."

"US interest payments as a share of GDP are currently at 2007 levels."

"The market for a 100-year bond would probably be very tiny but the treasury is moving to longer-term debt."

"Recapitalization of banks after 2008-2009 financial crisis has left a stronger core financial system."

"Financial tax would need to be studied for negative effects."

Market reaction

The US Dollar Index showed no immediate reaction to these remarks and was last seen losing 0.13% on the day at 90.25.