Janet Yellen has admitted regret over the nation’s growing fiscal crisis, but critics argue her policies directly contributed to the $15.2 trillion debt increase she oversaw as Treasury Secretary and Federal Reserve Chair. Speaking at a Wall Street Journal event, Yellen acknowledged the difficulties her successor will inherit.
Yellen disclosed a recent conversation with Scott Bessent, President Donald Trump’s nominee to replace her. She praised the Treasury Department’s staff but expressed disappointment about the lack of progress in narrowing the deficit during her tenure.
Under Yellen’s leadership, U.S. debt surged to historic levels, with critics pointing to prolonged low interest rates as a key driver of excessive government spending. The Biden administration’s record-breaking expenditures only compounded the issue, with massive outlays for domestic initiatives and foreign aid.
Interest payments on the debt now total $1.2 trillion annually, surpassing defense and health spending. Analysts caution that these costs could soon eclipse Social Security, creating a fiscal environment increasingly dominated by borrowing costs.
The administration’s final months have seen deficits grow at an unprecedented rate, while revenues have stagnated. Yellen’s acknowledgment of the crisis has done little to quell criticism, as many blame her for the unsustainable trajectory she now laments.
As Scott Bessent prepares to take over, the challenge of addressing the nation’s debt crisis will likely define his tenure. Whether reforms can reverse the damage remains uncertain.
