US: Treasury Secretary Yellen Address Fears Concerning Financial System

• She reassured members of Congress that the U.S. financial system remains strong

• Biden is proposing higher taxes on the wealthy to help shore up Social Security and Medicare

• Yellen is likely to face questions about U.S. banks’ exposure to Credit Suisse

Eko Hot Blog reports that In the wake of regulators’ decision to shut down two imperiled lenders to stem bank runs, Treasury Secretary Janet Yellen on Thursday sought to reassure members of Congress that the U.S. financial system remains strong.

EDITOR’S PICKS

• Weekly Gist With Annie: My Love-hate Experience At NYSC Camp

• India: Disruption Arises During G20 Peace Talk

• Japan: Controversies Rise Over PM’s LGBTQ Comments

In prepared remarks before the Senate Finance Committee about President Joe Biden’s fiscal year 2024 budget request, Yellen said that regulators’ “decisive and forceful actions” to take control of California’s Silicon Valley Bank and Signature Bank in New York — and to guarantee all their deposits, including those exceeding the federal $250,000 insurance cap — were designed to instill confidence among depositors.

“I can reassure the members of the Committee that our banking system remains sound, and that Americans can feel confident that their deposits will be there when they need them,” Yellen said. “This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe.”

She was speaking as part of Biden’s push to pass a $6.8 trillion budget, which proposes higher taxes on the wealthy to help shore up Social Security and Medicare, along with increased military spending.

In the prepared remarks, Yellen also mentioned inflation, which continues to post incremental declines. February’s 6% level remains well above the Federal Reserve’s 2% target. While the White House heralded the passage of the Inflation Reduction Act last year as a means to help curb price growth, she did not mention the legislation by name.

“We have seen some moderation in headline inflation, but more work needs to be done,” she said. “Our administration will continue to build on the actions we’ve taken to expand supply and provide cost relief in areas like energy and health care.”

Yellen’s remarks come one day after global financial markets were shaken by concerns about the viability of Credit Suisse, one of the largest and most important financial institutions in the world. Early Thursday, the Swiss lender said it would accept a $54 billion loan from the Swiss National Bank to help steady its finances.

The announcement buoyed Credit Suisse shares even as unease on Wall Street persisted, with First Republic and other regional U.S. banks trading sharply lower Thursday morning.

FURTHER READING

• US: Winter Storm Surges In California

• Greece: Death Toll Rises From Train Crash

• Everything You Need To Know About Alex Murdaugh Murder Trial

Yellen is likely to face questions about U.S. banks’ exposure to Credit Suisse and their potential resilience if faced with a deepening global financial crunch.

Source: NBC

Click to watch our video of the week:

---

Advertise or Publish a Story on EkoHot Blog:

Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.

Citizen journalists will receive a token as data incentive.

Call or Whatsapp: 0803 561 7233, 0703 414 5611