In the first confirmation hearing for a Biden Cabinet pick, treasury secretary nominee Janet Yellen answered questions on topics ranging from sanctions to the financial impact of climate change and defended the president-elect's economic agenda and planned coronavirus response. 

The former Federal Reserve chair, who is set to become the first female treasury secretary, spoke before the Senate Finance Committee and laid out her case for aggressive fiscal action in the months ahead. 

"Economists don't always agree, but I think there is a consensus now that without further action we risk a longer, more painful recession now and longer-term scarring of the economy later," she said. 

Multiple Republicans pressed Yellen on whether the federal debt would be a priority as the Biden administration rolls out a $1.9 trillion plan to combat the virus and rebuild the economy.

"Neither the president-elect or I propose this relief package without an appreciation for the country's debt burden, but right now, with interest rates at historic lows, the smartest thing we can do is act big," she said. 

Indeed, Yellen repeated throughout the hearing that low borrowing costs present an economic opportunity for the U.S. that shouldn't be ignored. She also suggested that higher federal spending may have to continue beyond meeting the immediate needs of the coronavirus pandemic, highlighting disparities in the U.S. economy that preceded the current crisis. 

"People worry about K-shaped recovery, but well before COVID-19 infected a single American we were living in a K-shaped economy, one where wealth built upon wealth while working families fell farther and farther behind," Yellen said. "This is especially true for people of color." 

Sen. Ron Wyden (D-Ore.) noted early in the hearing that federal spending after the Great Recession was too limited, and ultimately led to a longer and more painful economic downturn. 

"The good news is Chair Yellen knows that going small on economic relief would be a big mistake," he said. 

As the hearing expanded into other topics, Yellen had a chance to articulate her approach to other major economic questions, in particular, the ongoing trade war with China. The nominee didn't mince words about what she called China's "abusive, unfair, and illegal practices."

"China is undercutting American companies by dumping products, erecting trade barriers, and giving illegal subsidies to corporations," she said. "It's been stealing intellectual property and engaging in practices that give it an unfair technological advantage, including forced technology transfers."

In another implicit jab at China, the nominee was firm on the question of currency manipulation.

"The United States does not seek a weaker currency to gain competitive advantage, and we should oppose attempts by other countries to do so," she said. 

On sanctions, Yellen said her department would review the current policy and make sure to work with allies in the future rather than acting unilaterally as President Trump has done. 

"Sanctions are a critically important tool to address cybersecurity and other threats, and you can be sure that I will be focused on making sure that they're used strategically and appropriately."

Yellen explained that she sees her role as having a "dual mission" to help Americans get through the pandemic and rebuild an economy that "creates more prosperity for more people."

"You can count on me to do that in a bipartisan way," she said. 

On the more partisan domestic issue of raising the minimum wage to $15 per hour, which Biden endorsed as part of his economic plan, Yellen lightly refuted claims that it would lead to massive job losses among small businesses. 

"I think the likely impact on jobs is very minimal. That's my reading of the research."

She also noted that the Biden administration would not repeal the entirety of the Trump tax cuts, but would work to "reverse law's incentives to offshore operations and profits." 

While crucial ideological battles surfaced throughout the hearing, the Senators did not zero in on Yellen's record or past comments as Fed Chair, and throughout emphasized collaboration and discussion with the nominee. 

Wyden, the ranking Democrat on the committee, said Yellen could be confirmed as early as Thursday. Many expect she will be approved easily, with neither party expressing serious reservations about the nomination.

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