According to a report from Bloomberg, Secretary of the Treasury Janet Yellen will continue to lead the division. She reportedly agreed to do so at President Joe Biden’s request.
Biden sought for her to remain in the position in the middle of December, according to a White House official was familiar with the situation, as the president was ready to have changes made to his Cabinet.
According to Bloomberg, this comes as concerns about Yellen’s tenure in the Biden administration have been raised, and a potential conflict over the impending debt ceiling and the risk of a potential recession is developing in the Republican-controlled U.S. House. The end result of Yellen staying is that she will be part of the administration during an anticipated confrontation over the debt ceiling.
The treasury secretary was reportedly planning to remain in the role “long after” the midterm elections, despite the fact that the White House was reportedly preparing for possible departures of senior staff members as well as Cabinet-level officials. Then, in November, following the midterm elections, Yellen told Peter Alexander of NBC News that she planned to serve for “the remainder” of the Biden presidency.
Bloomberg also said:
“The action also provides Yellen more time to complete several of her highest priorities, including as overhauling the IRS, making changes at the World Bank, as well as increasing pressure on Russia for its involvement in the Ukraine War using sanctions and the oil price cap.”
“Biden’s plea that she remain also puts to rest rumors that the White House had been attempting to choose Commerce Sec. Gina Raimondo to run the Treasury Dept., which was seen as an effort to promote a Democratic rising star to an upper cabinet post.”
Yellen received criticism last year for downplaying the rapidly rising inflation. In fact, she acknowledged that she “was mistaken” about inflation during an interview with CNN that aired in May. She continued by saying that “unanticipated and significant shocks to the economy” had “enhanced energy and food prices” and that she “didn’t completely comprehend” the supply constraints that had a negative impact on the economy.