After the Interest Rate Decision, US Treasury Secretary Yellen’s Economy Statements Came!

US Treasury Secretary Janet Yellen said on Wednesday that her department is working to restore the Financial Stability Oversight Council (FSOC)’s ability to designate non-bank financial institutions as systemically important.

Yellen Testifies Before the Senate

Speaking at a session of the U.S. Senate’s Financial Services and General Management Appropriations Subcommittee, Yellen said the Treasury Department is working with the FSOC on a revised draft guideline that would bring such designations back.

Yellen stated that the Treasury is not considering or working on expanding its deposit insurance unilaterally.

When Yellen was asked about raising her deposit insurance limit, she said:

“Right now, we need to focus on building public confidence that we have a sound banking system. We can discuss in the coming days whether 250,000 is the right level for deposit insurance.

I am focused on stabilizing the banking system and increasing public confidence in it.”

In her prepared statement, Yellen said:

“Recent steps by the federal government have demonstrated our determination to take the necessary steps to ensure depositors’ savings remain safe.”

U.S. Secretary of the Treasury collapsed cryptocurrency said of his friend Silicon Valley Bank:

“Silicon Valley Bank’s business model was an ‘unconventional’ bank due to its interest rate risk and high percentage of uninsured deposits. We’ve never seen deposits flee at the rate they’re withdrawn from Silicon Valley Bank.

Situations similar to that of the SVB may become easier in the future, and regulations may need to be revised.”

Secretary of the Treasury Yellen made the following statements about FDIC insurance in the continuation of her statement:
“Congress should discuss changes to FDIC deposit insurance, and the Treasury stands ready to cooperate with lawmakers.”

*Not investment advice.