MNI: Treasury's Yellen - Banking System Sound Despite Turmoil

Treasury Secretary Janet Yellen said Thursday the U.S. banking system is safe despite recent turmoil that took down regional lenders Silicon Valley Bank and Signature Bank, prodding a new Fed lending facility to support the banking system and stem contagion.

"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. This week’s actions demonstrate our resolute commitment to ensure that depositors’ savings remain safe," Yellen said in prepared testimony to the U.S. Senate Committee on Finance. The hearing is intended to focus on President Biden's fiscal year 2024 budget.

"The Federal Reserve is providing additional support to the banking system with a new lending facility. This will help financial institutions meet the needs of all of their depositors." (See MNI INTERVIEW: Banks Need Not Deter Fed Inflation Fight-Lacker)

"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 healthcare."