To her, there is no shortcut to lower Uncle Sam’s debt burden as there are no justifications for a lower interest rate. “Any case for cutting rates has really disappeared,” says Yellen, who was the first female Fed Chair, sitting from 2014 to 2018, as well as the first female Treasury Secretary, serving under the Biden administration.
Former Federal Reserve Chair Janet Yellen does not see the US cutting its purse strings anytime soon as the country continues to issue debt. “There’s no serious discussion of deficit reduction,” she says at the Amundi World Investment Forum held in Paris from June 11-12.
Yellen believes that cutting debt levels would involve conversations that include potentially painful higher taxes or lower spending on retirement, healthcare and social programmes. However, these are not happening.
