NEW YORK: Treasury Secretary nominee Janet Yellen's unequivocal support for a pandemic rescue plan cuts both ways for investors, fueling optimism that the rally in risk assets will continue while bolstering concerns over a massive run-up in government debt.

In Yellen's Senate confirmation hearing on Tuesday, the former Federal Reserve chair urged lawmakers to "act big" on the next coronavirus relief package after President-elect Joe Biden last week outlined a US$1.9 trillion stimulus proposal as part of a domestic policy agenda heavy on government spending.