America’s two top economic policymakers warned lawmakers on Tuesday that the Delta variant of the coronavirus has slowed the economic recovery but conveyed optimism about the economy’s overall trajectory.
Treasury Secretary Janet L. Yellen and the Federal Reserve chair, Jerome H. Powell are testifying before the Senate Banking Committee at a critical moment. Businesses are facing labor shortages and consumers are coping with rising prices amid a resurgent pandemic. Congress is also grappling with a thicket of legislative challenges in the coming days, all of which could have an impact on the economy.
That includes the need to extend federal funding to avoid a U.S. government shutdown, raising the debt limit to prevent defaulting on the nation’s financial obligations and passing President Biden’s infrastructure and social safety net packages.
In a letter to Congress ahead of the hearing and in her opening remarks, Ms. Yellen said that Treasury is…