The US economy will continue to grow. said the Secretary of the Treasury of that country, Janet Yellen, despite recession fears reinforced by the crisis in the banking sector.
“I continue to anticipate that the American economy will grow, that the labor market will remain strong and inflation will fall“, however, Yellen said in an interview with the AFP agency published this Saturday.
This week the chief executive of JP Morgan Chase, Jamie Dimondwarned that the current crisis is not over yet and will be noticed in the years to come, noting that current conditions are nothing like those of the 2008 financial crisisbut added that it is not clear when the problems will end.
On this issue, Yellen insisted that will do its best to ensure that all deposits are safe and monitor conditions in the banking system.
Officials are also “ready to use all of our tools as needed for institutions of any size to keep the system safe and sound“, said.
After the bankruptcy of Silicon Valley Bank (SVB)the US authorities reacted to ensure customers could access deposits and did the same with Signature Bank.
The bankruptcy of SVB and Signature Bank last month rocked the industry, leading to US authorities, including the Treasury Department and the Federal Reserve (Fed, Central Bank), to intervene to prevent contagion.
Subsequently, the Fed and other major central banks coordinated so that the lenders had access to liquiditywhich calmed the situation.
“Our banking system is solid and resilientYellen said, adding that the initiatives being taken aim to “reinforce that and ensure broad public trust.”
He International Monetary Fund predicted this week that world economic growth will be below below 3% in 2023 and stay around 3% during the next five years.
Source: Ambito
