Treasury Secretary Janet Yellen advised lawmakers on Thursday that regulators are able to take further emergency actions if essential to stabilize banks.
“Certainly, we would be prepared to take additional actions if warranted,” Yellen stated in ready testimony to a Home subcommittee.
The road is new at was not in her ready remarks to a Senate panel Wednesday.
In reply to questions from lawmakers on Wednesday, Yellen stated the Treasury was not planning to supply a “blanket” assure of uninsured deposits. Some interpreted this as conflicting with the remarks of Fed chairman Jerome Powell who stated on Wednesday that “depositors should assume that their deposits are safe.”
The brand new language appears geared toward clearing up that confusion. Whereas Treasury isn’t offering a systemwide assure of deposits, it may accomplish that at further banks if officers deem it systemically dangerous to not, in response to Yellen.
Yellen will repeat her description of the federal government’s actions with respect to Silicon Valley Financial institution and Signature Financial institution.
As I’ve stated, we’ve got used vital instruments to behave rapidly to stop contagion. And they’re instruments we may use once more. The robust actions we’ve got taken make sure that People deposits are secure,” the ready remarks say.
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