The United States Secretary of the Treasury, Janet Yellenaffirmed this Thursday, March 30, that banking regulation and supervisory standards need to be reexamined after the bankruptcies Silicon Valley Bank and the SignatureBank to ensure they address the current risks of the banking system.
In the statements given to the National Business Economics AssociationYellen also asked for a tighter regulation of the growing non-bank sector or “shadow banking”.
Yellen also stated that it is “important that let us re-examine the adequacy of our current supervisory and regulatory regimes for the risks banks face today. We must act to address these risks if necessary.”
How does Wall Street operate?
Wall Street’s main indices rise this Thursday, March 30, when fears of a banking crisis with real estate and technological values, sensitive to rates of interest, leading gains ahead of key data on inflation that could mark the path of the monetary policy of the Federal Reserve.
Investors await the February reading of the Personal Consumption Expenditure (PCE) Price Indexthe Fed’s preferred inflation gauge, which will be published on friday after January figures showed a sharp acceleration in consumer spending.
Jobless claims rose more than expected last weekwhich indicates a US job market coolinge, while the growth of the GDP fourth quarter was slightly lowered to 2.6%compared to previous estimates of 2.7%.
These figures support the idea of the need for a less restrictive monetary policy by the Fed.
Investors will also analyze comments during the day from the Boston Fed president, Susan Collinsfrom the head of the Minneapolis Fed, Neel Kashkariand the president of the Richmond Fed, Thomas Barkinlooking for clues about monetary policy plans after the banking crisis.
Source: Ambito
