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US Treasury: Restored Stability in Banking Sector Post SVB Bank Bankruptcy


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US Treasury Secretary Janet Yellen said that the measures taken by the US authorities in response to the bankruptcy of SVB Bank prevented the outflow of funds from the banking system and restored the stability of the situation as a whole.

Yellen told CNN: “We see that the outflow of money from the banking system has stopped, and the situation has generally calmed down as a result of the measures taken by the authorities.. And, of course, we continue to closely monitor what is happening.”

In March, California financial regulators closed Silicon Valley Bank, which became the largest bank to fail in the US since the 2008 crisis and the second largest bank in history.

Yellen pointed out that banks are very cautious in their lending policies and pointed out that these self-restraints could be an alternative to higher interest rates in the future, which is what the Federal Reserve is adopting in an attempt to reduce inflation.

And the minister continued: “I don’t see anything dramatic yet that will significantly affect the future (the US economy). I think we are achieving moderate growth while maintaining a strong labor market while limiting inflation.”

Source: RIA Novosti

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