US Treasury Secretary Janet Yellen said on Wednesday that it would not be surprising to see another wave of consolidation in the banking sector as some face earnings pressure.
In this environment, some banks are under pressure on profits, a reason to see some consolidation, said Joe Biden’s Minister of Economy and Finance, during an interview with CNBC.
I wouldn’t be surprised to see some of that continue, she added.
Janet Yellen also pointed out that the banks should face certain difficulties linked to commercial real estate, between higher interest rates and the demand for office space which is suffering from teleworking.
Nevertheless, the level of capital and liquidity in the banking system is solid, and the banks should be able to manage this pressure, hammered the Secretary to the Treasury.
She also assured that, according to the most recent data, inflation was slowing down, while the labor market remained solid. Progress should, according to Ms Yellen, continue over the next two years.
Asked about the recent agreement which made it possible to suspend the debt ceiling and avoid a payment default by the world’s largest economy, Janet Yellen hailed a victory for the American people.
She added that the US central bank’s (Fed) efforts to bring inflation down were supported by the recent deficit-reduction deal and much smaller fiscal stimulus since the Covid-19 pandemic took hold. END.
Fed officials are due to meet next week for a two-day policy meeting, during which they will decide whether to continue raising rates, or take a break, to give themselves time to observe the economy. economy and thus avoid tightening too much, which could trigger a recession.
2023-06-08 06:34:20
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