Despite that reassuring message, Biden said he understands the existence of “some discomfort” but defended that his government has done “a good job” to ensure that Americans can access their savings and that the country’s banks have sufficient funds.
Biden’s message is included in his government’s attempts to calm the markets, ensuring that the US banking system is solid and that the authorities will take measures to guarantee savings in the face of the crisis unleashed in recent weeks by the bankruptcy of two banks of the country and the rescue of a third party.
The panic also crossed the Atlantic and almost finished with the Swiss bank Credit Suisse, which finally had to be acquired last weekend by its competitor UBS after the crisis of confidence that was sinking its price in the market.
In this regard, Biden stated that “what is happening in Europe is not a direct consequence of what has happened in the United States”, but reiterated that his government will guarantee the savings of Americans.
The financial situation of the two US banks that have gone bankrupt, Silicon Valley Bank (SVB) and Signature Bank, has been worsened by the Fed’s monetary policy, which has been raising interest rates since March of last year to combat inflation. .
Thus, the Fed decided to raise rates once more this week, 0.25 points, to place them in a range of between 4.75% and 5%, although the president of the Fed, Jerome Powell, did not rule out that the central bank you can pause these uploads at your next meeting.
This Friday, the large European banks registered another day of bulging falls in the stock market dragged down by the decline of more than 10% of the Deutsche Bank after announcing to pay off subordinated debt before its maturity.
Wall Street closed the week with increases of more than 1% in its main indicators despite concerns about the banking sector and the echoes of the financial crisis, focusing more on the messages and actions of financial and monetary policy makers.
