Yellen is going back on what she said yesterday and is now ready to increase the deposit guarantee. Very serious…
After triggering a market crash on Wednesday, 76-year-old Treasury Secretary Janet Yellen managed to change and contradict her words during her second day of testimony before the US Congress. For this reason the secretary, finally aware that he has almost caused a recession and a banking crisis, has changed an essential part of his speech.
Yesterday, before the Senate Financial Services Committee, he declared that he had neither examined nor considered the possibility of extending the guarantee on current accounts and his words had caused the stock market to collapse. Yellen apologized that such a measure would require congressional approval, but her words overruled Fed Governor Powell's attempts to reassure markets.
Now the Treasury secretary plans to tell US lawmakers that regulators would be prepared to take additional steps to protect deposits if warranted, in new language that differs from his prepared remarks to the Senate a day earlier.
Here is the paragraph that accompanied his speech yesterday:
As I said last week, the US banking system is sound. Recent actions by the federal government have demonstrated our strong commitment to taking the necessary steps to ensure that depositors' savings remain safe.
Today the entire paragraph has been deleted and replaced with the following:
“As I said, we have used important tools to act quickly to prevent contagion. And they are tools we could use again. The strong actions we have taken ensure the safety of American deposits. Certainly, we would be ready to take further action if warranted."
So Yellen, like a good Dem, said one thing yesterday, made a mess, and today, always before a legislative body, she practically says the exact opposite, in the hope that the market will forget yesterday's words to only remember those of Today. Who knows what changed in one day. Maybe the credit system isn't really as solid as Powell says?
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The article Yellen is going back on what she said yesterday and is now ready to increase the deposit guarantee. Very serious… it comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-yellen-si-rimangia-quello-che-ha-detto-ieri-e-ora-e-pronta-ad-aumentare-la-garanzia-sui-depositi-serissima/ on Thu, 23 Mar 2023 20:23:55 +0000.