Fed watcher Karen Petrou believes so, and she says the Fed can fight inequality with targeted policies.
In her Senate confirmation hearing Tuesday, Yellen is calling on Congress to do more to fight a deep pandemic-induced recession.
The headline items are $600 checks to individuals and an additional $300 per week in unemployment benefits for many.
“This downturn has not felt like a normal downturn for the whole economy because of fiscal relief,” says Robert Kaplan.
Some Senate Republicans want a new COVID relief bill to prohibit the Fed from restarting pandemic lending programs.
The picks for the Council of Economic Advisers are a diverse group. If confirmed, Cecilia Rouse will be the first Black woman to lead the council.
Yellen, a former Fed chair, has advocated for more spending to aid small businesses and the unemployed during COVID-19.
Companies hurt by the pandemic could end up paying investors a full percentage point more in interest to buy their bonds.
Fed programs and policy have helped ease economic pain during the pandemic. In its dwindling days, the Trump administration will end some of those emergency programs Dec. 31.
Economist Karen Petrou says the Fed programs have fallen short, but that the Fed needs some facilities in the face of inaction from Congress.