Approximately 26 days ago and the following day, the United States experienced two significant bank failures with the collapse of Silicon Valley Bank and Signature Bank. Current Treasury Secretary Yellen, who attended the event at Yale University, told reporters that she is keeping a close eye on the banking industry. Yellen insisted that “the situation is stable” and that the Treasury Department will not “allow a contagious [bank] run to develop” in the United States.
Treasury Secretary Yellen highlighted recent bank runs and stressed the stability of the U.S. banking system
U.S. Treasury Secretary Yellen recently spoke at Yale University and addressed reporters afterward. Yellen discussed recent problems in the U.S. banking industry and touched on the decision by Saudi Arabia and OPEC over the weekend to cut oil production.
Reporters asked Yellen about the impact of this decision on oil prices. Yellensaid“I think it’s regrettable that OPEC has decided to take this action.” “We don’t know yet what the impact on prices will be. I think we need to wait a little bit longer to see that.”
Yellen also spoke about the recent stress on the U.S. banking system following the collapse of several major banks since the first week of March. Yellen stressed to reporters that the Treasury Department is monitoring the situation closely and that the U.S. government is “not going to allow a contagious [bank] run to develop” in the country.
Yellen expressed her view that the steps taken by the Federal Reserve, the Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) have helped address the problem.
“My reading is that outflows from smaller banks are declining and things are stabilizing, but it is a situation that we are watching very closely,” Yellensaid. The Treasury secretary seemed to want the government to pay more attention to climate change.
“We have been working on a number of issues, including financial risk, but not enough focus has been given to climate risk. I don’t think there is a fundamental problem with the banking system,” Yellen opined. According to her latest remarks, the Treasury Secretary has made climate action a priority.
“The Inflation Control Act, at its core, is about turning the climate crisis into an economic opportunity,” Yellensaid of the Biden administration’s bill,
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