Updated Mar 16, 2023 - Economy

Yellen tells Congress that U.S. banking system is "sound"

anet Yellen holds up a copy of the Treasury Departments Greenbook

Janet Yellen testifies during a House Ways and Means Committee hearing on March 10. Photo: Drew Angerer/Getty Images

Treasury Secretary Janet Yellen sought to reassure Congress Thursday that the U.S. banking system remained "sound" after a week of market tumult.

Driving the news: Yellen's testimony comes days after the government moved to fully guarantee depositors in failed Silicon Valley Bank and Signature Bank, helping stem the immediate panic, Axios' Neil Irwin writes.

The big picture: In testimony before the Senate Finance Committee Thursday, Yellen touted the government's "decisive and forceful actions" to shore up confidence in the banking system.

  • "I can reassure the members of the committee that our banking system is sound and that Americans can feel confident that their deposits will be there when they need them," Yellen said.
  • She argued that the government's actions demonstrate its commitment to ensuring "that depositors' savings remain safe" and allowed bank customers to make payroll and pay their bills.

Editor's note: This article has been updated with new remarks from the hearing.

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