"Americans feel confident about the job market. Quits have increased up to record numbers, which is a sign that people are getting outside offers," Yellen said in an interview with CBS's Face The Nation on Sunday.
It's after the Labor Department released its latest statistics on Friday showing that a record 4.4 million people left their jobs in September alone.
There are more job possibilities than the 7.7 million unemployed in September, outlining the difficulties, so many companies have had to find workers.
Yellen admitted that the expected demand to return to work after the pandemic wiped out so many jobs was undercut by Biden's American Rescue Plan and the CARES Act signed by former President Donald Trump.
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She said they left Americans feeling "good about their finances" - despite otherwise extensive economic damage.
However, steps to ease existing economic strain could include rolling back sanctions on China put in place by the Trump administration, she said.
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"It would make some difference," Yellen acknowledged.
Biden and Congressional Democrats have tried to extend some of these programs but faced resistance from Republicans and even moderates within their party. Critics claimed maintaining the programs would de-incentivize people getting back to work.
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Yellen also noted that a majority of jobs that were cleared in September were front-facing support jobs.
"I think part of it reflects concerns about COVID and exposure to COVID, especially in jobs that involve public-facing activities," Yellen told host Margaret Brennan.
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But the newest jobs report published last week shows that the US is at least in part moving away from pandemic-forced job cuts.
It revealed that employers increased their hiring in October, adding 531,000 jobs, while the unemployment rate fell to 4.6 percent, from 4.8 percent. Hiring rebounded as the Delta wave, which had restrained job gains in August and September, declined.
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"The pandemic has been calling the shots for the economy and for inflation. And if we want to get inflation down, I think continuing to make progress against the pandemic is the most important thing we can do. I think it's- it's- it's important to realize that the cause of this inflation is the pandemic," Yellen told Brennan in the interview that aired on Sunday.
The Labor Department published new data on Wednesday illustrating that annual inflation has reached a 30-year high after growing 6.2 percent in the 12-month period ending in October.
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