Insight - Yellen-backed policies set to aid risk assets, raise long-term worries

In her Senate confirmation remote hearing on Tuesday, (pic left) the former Federal Reserve chair urged lawmakers to “act big” on the next coronavirus relief package after President-elect Joe Biden last week outlined a US$1.9 trillion stimulus proposal as part of a domestic policy agenda heavy on government spending.

TREASURY secretary nominee Janet Yellen’s unequivocal support for a pandemic rescue plan cuts both ways for investors, fuelling optimism that the rally in risk assets will continue while bolstering concerns over a massive run-up in government debt.

In her Senate confirmation hearing on Tuesday, the former Federal Reserve chair urged lawmakers to “act big” on the next coronavirus relief package after President-elect Joe Biden last week outlined a US$1.9 trillion stimulus proposal as part of a domestic policy agenda heavy on government spending.