Janet Yellen, the current US Treasury Secretary, recently spoke about the state of the country's banking industry and the decision made by Saudi Arabia and OPEC to cut oil production. Speaking to reporters following an event at Yale University, Yellen acknowledged the stress on the banking system in recent times after a few major banks collapsed. She emphasized that the US government is "not willing to allow contagious bank runs to develop" in the country and that they were closely monitoring the situation.
Yellen also commented on the oil production cut, calling it "regrettable" and stating that she was not yet sure of the price impact it would have. She also highlighted the importance of addressing climate risks and mentioned the Biden administration's Inflation Reduction Act, which aims to turn the climate crisis into an economic opportunity. Yellen expressed her opinion that the government needed to focus more attention on climate risks and suggested that the banking industry did not have any fundamental problems.
Yellen's comments come after the collapse of Silicon Valley Bank and Signature Bank in the US banking industry. While she acknowledged that matters were stabilizing, she emphasized that the Treasury was closely monitoring the situation and would not allow contagious bank runs to occur. Her comments also suggest that the government is focused on both financial risks and climate risks, with efforts being made to address both areas.
