Outgoing Treasury Secretary Janet Yellen has admitted regret over failing to curb the U.S. deficit, a crisis she helped create during her tenure. Speaking at a Wall Street Journal event, Yellen reflected on the fiscal challenges her successor, Scott Bessent, will inherit.
Yellen, who recently spoke with Bessent about the role, praised the Treasury Department but expressed disappointment over the lack of progress in reducing the nation’s debt. Under her leadership, U.S. debt soared by $15.2 trillion, accounting for 42% of all debt ever issued.
Critics blame Yellen’s policies, including prolonged low interest rates, for enabling excessive government spending. The Biden administration’s spending priorities, which included significant domestic initiatives and foreign aid, exacerbated the fiscal crisis.
Interest payments on the debt have now surpassed defense and health spending, reaching $1.2 trillion annually. Analysts warn these costs could soon outpace Social Security, underscoring the unsustainable fiscal trajectory.
The administration’s final months have seen unprecedented deficit growth, as revenues stagnated and government expenditures hit record highs. Yellen’s acknowledgment of the crisis has drawn criticism from those who argue her policies played a central role in creating the problem.
As Scott Bessent steps into the role of Treasury Secretary, the task of addressing the nation’s fiscal instability will require bold reforms. Observers remain skeptical about whether meaningful change can reverse the damage done during Yellen’s tenure.
