Good news! The US economy will continue to grow, says Treasury secretary

Inspenet, April 11, 2023

The US economy will continue to grow, Treasury Secretary Janet Yellen said in an interview with Agence France-Presse (AFP), despite recession fears reinforced by the crisis in the banking sector.

The failure of Silicon Valley Bank (SVB) and Signature Bank last month rocked the industry, prompting US authorities, including the Treasury Department and the Federal Reserve (Fed, Central Bank), to intervene.

Since then the situation has calmed but analysts warn that the consequences of the recent instability could continue, as banks tighten credit standards, reducing the credit available to households and companies.

“I continue to anticipate that the US economy will grow, the job market will remain strong and inflation will come down,” Yellen said.

A few days ago, JPMorgan Chase CEO Jamie Dimon warned that the current crisis is not over yet and will be felt for years to come.

On this issue, Yellen insisted that she will do everything she can to ensure that all deposits are safe and monitor conditions in the banking system.

Officials are also “prepared to use all of our tools as needed for institutions of any size to keep the system safe and sound,” he said.

After the bankruptcy of SVB, the US authorities reacted to ensure that customers could access deposits and did the same with Signature Bank.

Subsequently, the Fed and other major central banks coordinated so that lenders had access to liquidity.

“Our banking system is strong and resilient,” Yellen said, adding that the initiatives taken are aimed at “reinforcing that and ensuring broad public confidence.”

Source : © Agence France-Presse –

Photo: ShutterStock

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