Yellen Says Biden Stimulus Plan Essential for Unemployment Rates to Return to Normal
In an interview with CNN on Sunday, Treasury Secretary Janet Yellen said that the US could return to "full employment" by next year if Congress approves Biden's $1.9 Trillion Covid-19 Relief Plan.
If it is not approved, Yellen warned that the unemployment rates would remain elevated for several years and that it would take until 2025 for unemployment to get back down to 4%.
The information comes from an analysis put out by the Congressional Budget Office which showed that unemployment rates would remain elevated unless additional support was provided. The CBO estimates that, without an additional stimulus, unemployment won't return to pre-pandemic rates until 2024.
"Full employment" does not mean that unemployment rates are at 0%, instead it is a term that represents when employers have hired all professionals needed.
Photo Source: Federal Reserve