'Bidenomics' causes fall of WH Cabinet, Yellen to potentially depart
With the midterm elections coming up in November, a potential Cabinet reshuffling may take place with Treasury Secretary Janet Yellen possibly on top of the list, amid Biden's failure in economic handling.
In light of public criticism surrounding US President Joe Biden's handling of the economy, the White House is currently and quietly preparing for the departure and replacement of Treasury Secretary Janet Yellen, according to Axios, citing sources familiar with the matter.
A decision on the identity of her replacement has not been made or confirmed by the Senate, but multiple sources stated that the results of November's elections will highlight if Yellen will remain or will be removed. The Treasury Secretary is not the only one potentially leaving - Brian Deese, the director of the National Economic Council (NEC), may also leave early next year.
Regarding the Cabinet members, Gene Sperling, currently managing the enforcement of the $1.9 trillion American Rescue Plan, will see Deese's leave as a chance to serve a third term as the NEC director as his first and second terms were held with the Clinton and Obama administrations, respectively. Another Cabinet member, Cecilia Rouse, whose position is the chair of the Council of Economic Advisers, is due to restore her academic position in 2023, leaving another economic seat vacant.
Yellen has been known to disagree with the Biden administration on various high-level issues such as Biden's recent decision to implement student debt forgiveness and the blame being put on Corporate America for the inflation crisis. However, she has admittedly stated that she was wrong regarding inflation and that the Federal government would benefit if they raised interest rates.
With that, according to Treasury spokesperson Lily Adams who said Yellen has no intentions of leaving, White House senior adviser Anita Dunn also said in a statement: "While we are prudently planning for potential transitions post-midterm, neither Secretary Yellen or Brian Deese are part of those plans".
The reshuffling of the economic Cabinet comes in light of recent polls by ABC News and Washington Post demonstrating that Biden's approval rating on the economy is at 36%, leaving 57% of voters disapproving, and putting Republicans in a situation whereby high inflation and slow economic growth at the core of their midterm aims. That core message will allow the Republican party to use the situation against Biden as a justification for his mishandling of the US economy.
White House officials are still adamant about explaining and re-presenting Biden's economic policy agenda, dubbed "Bidenomics", to define the current American economic downfall. It is worth noting that the economic situation, which is affecting the financial standpoints of American families and businesses, is burdening Biden's popularity which in turn hinders his chances of winning the midterm congressional elections in early November.
Biden has even chastised Russian President Vladimir Putin for the country's record gas prices and 40-year-high inflation in June. In the face of dismal polling results, Biden highlighted that his administration is working hard to rein in soaring costs.
To save Yellen's career, the White House has assigned her to handle and exhibit how Biden successfully managed the economy by showing results such as the 3.7% unemployment rate and an increase in domestic manufacturing, a desperate attempt to steer the media and public away from the alarming 8.3% inflation rate.
Although Yellen denied claims of a near recession, economic indicators prove otherwise, as consequences have rolled over in the past year. The US has seen food and baby formula shortages, inflation, a gas crisis, and sanitary product deficiencies, not to mention an exponential increase in prices all over the nation. The fallouts of the US economic deficit are resembling a domino effect, despite government denial of any recession or crisis, with housing and a mortgage crash anticipated to come next amid Biden's stubbornness and perseverance in issuing billions of dollars worth of weapons and arms to Ukraine almost every other month while his country faces the brunt of inflation that it may or may not come out alive from.
Although possible candidates for Yellen's position include Commerce Secretary Gina Raimondo and Fed Vice Chair Lael Brainard, some officials will eventually argue against removing Yellen for the sake of the fragile global economy which rings a bell of 2007's economic crisis to central bankers and finance ministers according to Axios' Neil Irwin. However, the reputation she has among the world's finance ministers and central bankers may end up saving her career.
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