The US president-elect’s nominee for treasury secretary has told lawmakers that "the smartest thing we can do is act big" on the next coronavirus relief package, adding that the benefits outweigh the costs of a higher debt burden.

In testimony at her virtual confirmation hearing, Janet Yellen said her task as treasury chief would be twofold: to help Americans endure the final months of the coronavirus pandemic, and to rebuild the US economy “so that it creates more prosperity for more people and ensures that American workers can compete in an increasingly competitive global economy”.