HomeEconomyFed chair says US savers' money is 'safe'

Fed chair says US savers’ money is ‘safe’

Jerome Powell assured that the Fed “was determined to learn the lessons of this episode” marked by tremors in the banking sector.

US Central Bank (Fed) Chairman Jerome Powell said Wednesday that savers’ money is “safe” in US banks as the global banking system is disrupted following US bank failures.

Jerome Powell recalled, during a press conference, that the US banking system was solid and stressed that the institution was “determined to learn the lessons of this episode.”

Strengthen banking regulation

Thus, he stated that it was necessary to strengthen banking supervision and regulation after the bankruptcy of Silicon Valley Bank (SVB).

Pointing to “mismanagement” on the part of the US bank’s management, he was surprised at the extreme speed of the massive withdrawal of funds by clients. “The question is how did this happen,” she added, recalling that an investigation was underway by regulators and that she was also in favor of an independent inquiry.

Author: LP with AFP
Source: BFM TV

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