Stocks on Wall Street have climbed after the rescue of Credit Suisse calmed nerves about a larger banking crisis. The United States treasury secretary, Janet Yellen, says the local financial sector is stabilising after it was put to the test by the collapse of two banks this month. But the world's largest economy is still facing some strong headwinds. Al Jazeera's Gabriel Elizondo reports from New York, the United States. - Subscribe to our channel: - Follow us on Twitter: - Find us on Facebook: - Check our website: @AljazeeraEnglish #Aljazeeraenglish #News #UnitedStates #economy #bankingcrisis...(read more)
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Federal Reserve Chair Janet Yellen recently addressed concerns over the state of the US banking system, stating that the failures currently being experienced are “very different” from those seen in the 2008 financial crisis. In remarks made to the World Affairs Council of Philadelphia, Yellen emphasized that the current bank failures are largely a result of lower oil and commodity prices, rather than the kind of systemic weaknesses that led to the 2008 crisis. She noted that, while energy and commodity producers make up only a small fraction of the US economy, the recent drop in prices has had a significant impact on banks that lent heavily to these industries. Yellen also pointed out that, since the financial crisis, banks have been required to take on higher capital and liquidity standards, which has greatly improved their resilience in the face of economic shocks. This, coupled with the Fed’s “stress testing” exercises, has helped to ensure that US banks are better equipped to deal with financial turbulence than they were in 2008. However, Yellen warned that there are still risks to the US banking system, particularly in the form of cybersecurity threats and the ongoing issue of “too big to fail” institutions. She emphasized the importance of continuing to implement reforms that promote greater stability in the financial sector. In conclusion, Yellen’s remarks suggest that while the current wave of bank failures is concerning, it is not indicative of a larger systemic issue. The improvements made to the banking system since 2008 have helped to ensure that banks are better able to withstand economic shocks, but there is still work to be done in terms of addressing remaining vulnerabilities. Ultimately, a continued focus on stability and reform will be key to ensuring a secure and resilient US banking system. https://inflationprotection.org/yellen-suggests-us-bank-failures-in-current-situation-are-distinct-from-2008-crisis/?feed_id=84848&_unique_id=642da724557f8 #Inflation #Retirement #GoldIRA #Wealth #Investing #aljazeera #aljazeeraenglish #aljazeeralive #aljazeeravideo #aljazeeraenglish #aljazeeralatest #aljazeeralive #aljazeeralivenews #bank #bankingcrisis #crisis #DC #employees #Europe #europeancentralbank #financialcrisis #latestNews #money #newsheadlines #regulators #siliconvalley #siliconvalleybank #UnitedStates #US #USbank #washington #BankFailures #aljazeera #aljazeeraenglish #aljazeeralive #aljazeeravideo #aljazeeraenglish #aljazeeralatest #aljazeeralive #aljazeeralivenews #bank #bankingcrisis #crisis #DC #employees #Europe #europeancentralbank #financialcrisis #latestNews #money #newsheadlines #regulators #siliconvalley #siliconvalleybank #UnitedStates #US #USbank #washington
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