It’s been just over three weeks since Silicon Valley Bank and Signature Bank experienced collapses. During a speech at Yale University on Monday, Treasury Secretary Janet Yellen addressed the banking industry, emphasizing the government’s close monitoring of the situation. She noted that the U.S. was “not willing to allow contagious [bank] runs to develop”.
Treasury Secretary Yellen Offers Update on US Bank System and Remarks on OPEC Oil Cut
U.S. Treasury Secretary Janet Yellen was recently at Yale University to speak to the press. Her comments touched on the recent issues with the American banking sector, as well as the weekend’s OPEC decision to reduce oil production.
When asked about the potential impacts of the OPEC move on oil prices, Yellen replied “I think it’s regrettable that OPEC decided to take this action. We need to wait a little longer to assess what its price impact will be.” She described the decision as “unconstructive”.
The Treasury Secretary also discussed the banking industry’s recent stress, following the collapse of several major banks in the first week of March. Yellen clarified that the government was closely watching the situation and was “not willing to allow contagious [bank] runs to develop” in the U.S.
Yellen went on to say that she was not completely satisfied with the actions taken by the Federal Reserve, Treasury, and Federal Deposit Insurance Corporation (FDIC) to address the issues. “My read is that outflows from smaller and medium-sized banks are diminishing, and matters are stabilizing, but it’s a situation we’re watching very closely,” she said.
The Treasury Secretary also prioritized the government’s focus on climate change mitigation. She noted that the Inflation Reduction Act is “at its core, about turning the climate crisis into an economic opportunity.” This is in line with the Biden administration’s climate change legislation.
What are your thoughts on Janet Yellen’s recent statements on OPEC’s decision to cut oil, the U.S. banking system, and climate change? Share your opinion in the comments below.
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