Treasury's Yellen says U.S. 'desperately' needs Congress to act on stimulus

FILE PHOTO: Janet Yellen, U.S. President-elect Joe Biden’s nominee to be treasury secretary, speaks as Biden announces nominees and appointees to serve on his economic policy team at his transition headquarters in Wilmington, Delaware, U.S., December 1, 2020. REUTERS/Leah Millis/File Photo

WASHINGTON (Reuters) – U.S. Treasury Secretary Janet Yellen said on Tuesday that new growth forecasts from the Congressional Budget Office showed the United States “desperately” needs Congress to act on President Joe Biden’s coronavirus rescue package.

“Last year, the economy shrunk more than any other since the end of World War II. With the growth that the CBO projects, it will be years before the country reaches full employment again,” Yellen said in a statement, issued after speaking with Senate Democrats on Tuesday about Biden’s proposed $1.9 trillion American Rescue Plan.

The CBO on Monday updated its forecasts to show new, rosier GDP growth projections for 2021, but a full recovery in jobs to pre-pandemic levels not taking place until 2024.

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