 |
| US Treasury Secretary Yellen Expresses Willingness to Take Additional Deposit Actions If Necessary |
US Treasury Secretary Yellen has stated that the government is "prepared to take additional actions if warranted" to ensure that Americans' deposits remain safe. Speaking before the House Appropriations Financial Services Subcommittee, Yellen emphasized that strong actions have been taken to prevent contagion and that important tools could be used again if necessary.
Yellen's comments come as Treasury futures climb higher, and yield curves continue to climb off deeper inverted levels. There is also reduced pressure on supply chains and lower shipping costs, which could help ease supply pressures and lower inflation in the long run.
However, Yellen's testimony did weigh on stocks, as she stated that the Treasury Department is "not considering broad increase in deposit insurance", which is at odds with Chairman Powell's comment supportive of regional banks. It remains to be seen what actions the government will take to ensure the safety of Americans' deposits in the coming weeks and months.
