US Treasury Secretary Janet Yellen estimated on Wednesday, before Donald Trump’s return to the White House, that it was necessary to change the US budgetary trajectory to avoid “disastrous” consequences for the world’s leading economy.
“The current fiscal path is simply not sustainable, and the consequences of inaction, or action that increases deficits, could be disastrous,” Yellen said at an economic club in New York. President-elect Donald Trump has promised to renew and expand tax cuts implemented during his first term.
A burden “on future generations”
During her speech, the outgoing minister cited the forecasts of the Congressional Budget Office (CBO), an independent organization in charge of providing the United States Congress with budgetary and economic analysis, according to which the simple perpetuation of the tax cuts of the first term would worsen the deficit of 400 billion dollars a year.
“These policies could weaken our country,” he added, citing risks to “the value of the dollar,” such as the state’s ability to finance itself in the markets, or even the specter of a “debt crisis.”
Janet Yellen said such a situation would “weigh heavily on future generations.” Donald Trump, who will take office on January 20, has reiterated his desire to continue cutting taxes while cutting federal government spending. He assures that the tax revenues from the additional customs duties that he wants to establish will allow the accounts to be rebalanced.
Source: BFM TV
