Banking Crisis Is “Not Over Yet” – President Joe Biden Says

Sahana Kiran
Joe biden
Source – The Hill

The American economy had a fairly erratic month in March 2023. The failure of numerous well-known banks turned out to be bad for the whole financial system. In the midst of this, a number of authorities, including U.S. Treasury Secretary Janet Yellen, stated that everything is well and the bank’s liquidity is strong. But Joe Biden, the president, has something different to say.

Biden mentioned earlier today that his government had taken every measure to resolve the financial situation. In spite of this, he feels that the industry’s burden is “not over yet.”

Further instilling a tad bit of hope into the market, Biden added,

“We’ve done what we need to do executively. I feel confident things are settling out. The markets seem to be responding.”

The President also disclosed that the administration has not yet explored all of its options. Biden further said,

“We’re watching very closely. I think my team has handled it very well so far. And rather than get ahead of myself here, I think let’s let things move the way they are.”

Following the downfall of the Silicon Valley Bank and Signature Bank, the U.S. government was forced to step up its game. The Biden administration moved swiftly to enact a number of emergency measures to safeguard depositors at the two banks, and the Federal Reserve contributed extra liquidity to assist banks throughout the sector in meeting the demands of the depositors.

Joe Biden’s administration might bring about legislative changes

In addition to all the things that the government has already done, Biden highlighted the possibility of carrying out legislative changes. Even though this might be hard to achieve in the split Congress, Biden stated,

“I’m not sure whether we get much legislative change. But we’re looking at that as well.”

While several believe that the banking turmoil can’t be contained, the government seems to be trying its best to do so.