US economy will continue to grow, says Treasury secretary

The US economy will continue to growaffirmed the Treasury Secretary Janet Yellenin an interview with AFP, 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 down but the analysts warn that the consequences of the recent instability could continueas banks tighten credit standards, reducing the credit available to households and businesses.

"I keep anticipating that the US economy will grow, the job market will remain strong, and inflation will decline"Yellen nonetheless asserted.

This week JPMorgan Chase CEO Jamie Dimon warned that the current crisis is not over yet and will be felt in the coming years.

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.

About this theme, Yellen insisted that she will do everything she can to ensure that all deposits are safe and monitor the conditions of 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 SVB, lUS authorities reacted to ensure customers could access deposits and they did the same with Signature Bank.

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

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"Our banking system is solid and resilient"said Yellen, adding that the initiatives taken are aimed at "reinforce that and ensure broad public confidence".

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