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[Economics] US economy will continue to grow and inflation will fall: Treasury secretary


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Janet Yellen. / Agencia Bloomberg

 

The US economy will continue to grow, Treasury Secretary Janet Yellen said in an interview, despite recession fears reinforced by the crisis in the banking sector.

The failure of Silicon Valley Bank (SVB) and Signature Bank last month rocked the industry, prompting US authorities, including the Treasury Department and the Federal Reserve (Fed, Central Bank), to intervene to prevent contagion. .

Since then the situation has calmed but analysts warn that the consequences of the recent instability could continue, as banks tighten credit standards, reducing the credit available to households and companies.

I continue to anticipate that the US economy will grow, that the labor market will remain strong and that inflation will go down," Yellen said nonetheless.

This week JPMorgan Chase chief executive Jamie Dimon warned that the current crisis is not over yet and will show up for years to come.

He noted that current conditions are nothing like those of the 2008 financial crisis, but added that it is not clear when the problems will end.

On this issue, Yellen insisted that she will do everything she can to ensure that all deposits are safe and monitor conditions in the banking system.

Officials are also “prepared to use all of our tools as needed for institutions of any size to keep the system safe and sound,” he said.

After the bankruptcy of SVB, the US authorities reacted to ensure that customers could access deposits and did the same with Signature Bank.

Subsequently, the Fed and other major central banks coordinated so that lenders had access to liquidity.

“Our banking system is strong and resilient,” Yellen said, adding that the initiatives taken are aimed at “reinforcing that and ensuring broad public trust.”

 

https://www.elespectador.com/economia/economia-de-ee-uu-seguira-creciendo-y-la-inflacion-bajara-secretaria-del-tesoro/

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