Yellen to tell Congress banking system

Treasury Secretary Janet Yellen will try to reassure Congress, however. Collapse of two banks The country’s banking system remains strong despite ongoing consumer concerns over the past several days and the state of the financial services sector.

Testifying before the Senate Finance Committee on Thursday, Yellen is expected to announce the administration’s “decisive and strong actions to strengthen public confidence in our banking system.”

She will also note the Treasury Department’s work with the Federal Reserve and the FDIC to protect all depositors.

“On Monday morning, customers were able to access all of the money in their deposit accounts so they could make payroll and pay bills,” Yellen is expected to say of customers at both banks. will, pointing out that investors in these banks do not even rent. “Shareholders and borrowers are not being protected by the government. Importantly, no taxpayer money is being used or put at risk by this action. Deposit protection is provided by the Deposit Insurance Fund. goes, which is financed by bank fees.”

Yellen will also highlight the Federal Reserve’s plan to provide additional support to the banking system by establishing a new lending facility aimed at helping financial institutions meet the needs of all their depositors.

“I can assure members of the committee that our banking system is sound, and that Americans can feel confident that their deposits will be there when they need them,” he said. It is expected. “This week’s actions demonstrate our strong commitment to ensure that depositors’ savings are protected.”

In her statement, Yellen also planned to address high inflation, noting that headline inflation has moderated somewhat, but “more work needs to be done.” Inflation cooled in February, however Stays stubbornly high., at 6%. The Fed must decide soon whether to raise interest rates to try to curb inflation, or to cut them because of pressure from higher rates on the banking industry.