Janet Yellen has expressed regret over the U.S. fiscal crisis but faces mounting criticism for her role in creating it. Speaking at a Wall Street Journal event, Yellen admitted concerns about fiscal sustainability after overseeing a $15.2 trillion increase in debt during her tenure.
Yellen, who recently spoke with Scott Bessent, President Donald Trump’s Treasury Secretary nominee, reflected on the challenges ahead. She highlighted the department’s strengths but acknowledged disappointment over failing to reduce the deficit as interest rates climbed.
During her time as Federal Reserve Chair and later as Treasury Secretary, the U.S. debt grew to record levels. Critics argue her policies, particularly extended low interest rates, enabled excessive government spending. The Biden administration’s spending priorities further fueled the crisis, with major allocations to domestic programs and aid to Ukraine.
Interest payments on the debt now rank among the largest federal expenses, totaling $1.2 trillion annually. These costs have overtaken health and defense spending and are poised to surpass Social Security, raising alarms about the nation’s fiscal sustainability.
The administration’s final months have seen record deficits, while tax revenues have flatlined. Economists warn of an impending financial crisis, as existing debt rolls over at significantly higher rates.
Yellen’s apology has done little to satisfy critics, who view her policies as central to the current fiscal instability. Scott Bessent now faces the monumental task of addressing the debt crisis amid an increasingly challenging economic landscape.
