US Treasury Secretary Yellen issues warning before stepping down: Extending Trump's tax cuts may disrupt the US market

The outgoing US Treasury Secretary, Janet Yellen, has warned that the next government's plan to extend the Republican tax cuts of 2017 could disrupt financial markets and worsen an already challenging fiscal outlook for the United States. "The expected fiscal path under current budget policy is simply not sustainable, and inaction or actions that exacerbate projected deficits could have dire consequences," Yellen said on Wednesday, possibly her last speech while in office.

In a speech delivered at the New York Association for Business Economics, Yellen stated that extending Trump's tax cut policies from his first term "could weaken our nation's strength, from the resilience of U.S. bond markets to the value of dollar, and even trigger a debt crisis in future." She also noted that such "wrong economic decisions" would affect long-term economic prospects and impose heavy burdens on future generations.