Sec. Yellen: ‘I Am Concerned About Fiscal Sustainability and I Am Sorry that We Haven’t Made More Progress’

IP One last question ░░░░░░░░ not so great aspect ░░░░░░░░ the legacy you and ░░░░░░░░ Biden leave behind is ░░░░░░░░ very large budget deficit ░░░░░░░░ 6 percent of GDP ░░░░░░░░ you sorry you couldn ░░░░░░░░ make more progress on ░░░░░░░░ And how much of ░░░░░░░░ risk does that pose ░░░░░░░░ the economy Yellen Well ░░░░░░░░ am concerned about fiscal ░░░░░░░░ and I am sorry ░░░░░░░░ we haven t made ░░░░░░░░ progress I believe that ░░░░░░░░ deficit needs to be ░░░░░░░░ down especially now that ░░░░░░░░ re in an environment ░░░░░░░░ higher interest rates And ░░░░░░░░ example over the last ░░░░░░░░ the interest cost of ░░░░░░░░ debt has increased by ░░░░░░░░ hundred billion It s ░░░░░░░░ of the largest items ░░░░░░░░ for increased the increase ░░░░░░░░ the budget deficit and ░░░░░░░░ do need to bring ░░░░░░░░ down The primary deficit ░░░░░░░░ interest is now a ░░░░░░░░ over 3 percent and ░░░░░░░░ believe it needs to ░░░░░░░░ down President Biden s ░░░░░░░░ when we raised the ░░░░░░░░ ceiling last an agreement ░░░░░░░░ has led to 1 ░░░░░░░░ in deficit reduction over ░░░░░░░░ the next 10 years ░░░░░░░░ he proposed a budget ░░░░░░░░ 2025 that includes another ░░░░░░░░ trillion in deficit reduction ░░░░░░░░ the next 10 years ░░░░░░░░ that plus allowing the ░░░░░░░░ of parts of the ░░░░░░░░ JCTA the Tax Aut ░░░░░░░░ of 2017 to expire ░░░░░░░░ sufficient to keep our ░░░░░░░░ policy on a sustainable ░░░░░░░░ But there will be ░░░░░░░░ negotiations over what happens ░░░░░░░░ those expiring tax provisions ░░░░░░░░ everything is kept in ░░░░░░░░ and they re not ░░░░░░░░ to expire We just ░░░░░░░░ JCTA as it is ░░░░░░░░ CBO is estimated that ░░░░░░░░ cost of that is ░░░░░░░░ trillion So I believe ░░░░░░░░ s important I hope ░░░░░░░░ Congress in considering this ░░░░░░░░ look for ways to ░░░░░░░░ for whatever they do ░░░░░░░░ to avoid that explosion ░░░░░░░░ our deficit from a ░░░░░░░░ point where the deficit ░░░░░░░░ already too high and ░░░░░░░░ they ll focus any ░░░░░░░░ on middle class families ░░░░░░░░ look for ways to ░░░░░░░░ revenue and pay for ░░░░░░░░ that s put in ░░░░░░░░