About 26 days ago and in the days that followed, the US witnessed two major bank failures as Silicon Valley Bank and Signature Bank collapsed. After speaking at an event Monday at Yale University, Janet Yellen, the current US Treasury secretary, told reporters that she was closely monitoring the banking industry. Yellen insisted that “things are stabilizing” and that the Treasury was “not willing to allow contagious (bank) runs to develop” in the United States.
Treasury Secretary Yellen addresses recent bank failures and emphasizes stability in the US banking system.
US Treasury Secretary Janet Yellen recently spoke at Yale University and made remarks to reporters following the event. Yellen discussed recent troubles within the US banking industry and touched on the decision made over the weekend by Saudi Arabia and OPEC to cut oil production.
Reporters asked Yellen about the impact the decision could have on oil prices. “I think it is unfortunate that OPEC has decided to take this step”, Yellen saying. “I’m still not sure what the impact on prices will be. I think we have to wait a little longer to assess that.”
Yellen also spoke about the stress in the US banking system of late following the collapse of some major banks after the first week of March. Yellen stressed to reporters that the Treasury was closely monitoring the situation and that the US government was “unwilling to allow contagious (bank) runs to develop” in the country.
Yellen expressed her opinion that actions taken by the Federal Reserve, the Treasury and the Federal Deposit Insurance Corporation (FDIC) had helped address the problems.
“My read is that outflows from small and midsize banks are slowing and things are leveling off, but it’s a situation we’re watching very closely,” Yellen fixed. The Treasury secretary seemed intent on getting the government to focus more attention on climate change.
“We have addressed a variety of issues, including financial risks, but we have not focused enough on climate risks. I don’t think there is a fundamental problem with the banking system,” Yellen said. According to her latest statements, the Treasury Secretary has been prioritizing efforts to combat climate change.
“The Inflation Reduction Act is, at its core, about turning the climate crisis into an economic opportunity,” Yellen saying on legislation from the Biden administration.
What do you think of Yellen’s recent remarks on OPEC’s decision to cut oil, the US banking system and climate change? Share your thoughts from him in the comments section below.
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