• Mon. Mar 20th, 2023

U.S. economy is sound, treasury secretary tells senators

ByEditor

Mar 16, 2023

The government took decisive and forceful action right after Silicon Valley Bank collapsed final week, Treasury Secretary Janet Yellen stated Thursday just before the Senate Finance Committee. The government employed dollars from the Deposit Insurance coverage Fund, which is funded by costs paid by banks, Yellen stated. Some Republicans are vital of the choice to backstop deposits beyond the $250,000 limit of the Federal Deposit Insurance coverage Corp.—calling that backstop a government bailout. Yellen is the initial Biden administration official to face lawmakers more than the bank’s collapse. The hearing was meant to address President Joe Biden’s spending budget proposal for the subsequent fiscal year. 

What about the rest of the world’s economy? The European Central Bank on Thursday raised its crucial interest prices by half a percentage point—a fairly huge boost meant to fight inflation. European Central Bank President Christine Lagarde deemed the European banking method “resilient.” On Wednesday, shares in the Swiss bank Credit Suisse lost roughly a quarter of their worth yesterday, forcing the Swiss central bank to intervene and loan Credit Suisse $54 billion to stabilize its finances and send its stock climbing Thursday. 

Dig deeper: Study Jerry Bowyer’s column in Planet Opinions about investors’ no-self-assurance vote in the U.S. economy for 2023.