Yellen's Concerns: Tariffs, Taxes, and Fiscal Stability

U.S. Treasury Secretary Janet Yellen expressed concerns about President-elect Trump's proposed tariffs, fearing they could disrupt inflation management and increase costs. Yellen also highlighted concerns over fiscal sustainability, urging Congress to find ways to offset extensions of Trump's tax cuts, which could significantly add to the national deficit.

U.S. Treasury Secretary Janet Yellen has issued a stark warning regarding President-elect Donald Trump's proposed tariffs, voicing fears that such measures could disrupt inflation management and lead to increased costs for both households and businesses. Speaking at a Wall Street Journal CEO Council event, Yellen emphasized the potential impact on U.S. economic competitiveness due to Trump's plans to impose tariffs on imports.

Yellen noted that extending the expiring provisions of the 2017 Tax Cuts and Jobs Act could add $5 trillion to the national deficit over the next decade, underlining the importance of fiscal responsibility. She urged Congress to find ways to cover any costs associated with extending these tax cuts to avoid an unsustainable ballooning of national debt.

In her discussion with Scott Bessent, Trump's pick for Treasury Secretary, Yellen highlighted the broad responsibilities of the department and the professionalism of its staff. She reiterated her support for an independent Federal Reserve and warned against politicizing the institution, which she believes could undermine public confidence in the economic system.

(With inputs from agencies.)