Yellen raises debt concerns on US tax reform

Janet-Yellen-Fed-700x450.jpg

Janet Yellen has criticised US tax reform plans arguing they will add to surging public debt and income inequality.

The outgoing chair of the US Federal Reserve told the Joint Economic Committee on Wednesday that the country’s surging debt should be keeping Americans up at night, the Financial Times reports.

Donald Trump’s tax reform package is currently being considered by Congress and would lead to around $1.5trn of lost revenue over a decade.

Yellen says she is “very worried” about the sustainability of the US debt trajectory.

Her appearance before lawmakers is likely to be her last as US Fed chair before she is replaced by Jerome Powell in February.