Yellen Says Treasury Prepared To Take ‘Additional Actions’ to Protect Deposits

Treasury Secretary Janet Yellen listens as she testifies during a House Ways and Means com
AP Photo/Mariam Zuhaib, FIle

Treasury Secretary Janet Yellen told lawmakers on Thursday that regulators are ready to take additional emergency actions if necessary to stabilize banks.

“Certainly, we would be prepared to take additional actions if warranted,” Yellen said in prepared testimony to a House subcommittee.

The line is new at was not in her prepared remarks to a Senate panel Wednesday.

In answer to questions from lawmakers on Wednesday, Yellen said the Treasury was not planning to provide a “blanket” guarantee of uninsured deposits. Some interpreted this as conflicting with the remarks of Fed chairman Jerome Powell who said on Wednesday that “depositors should assume that their deposits are safe.”

The new language seems aimed at clearing up that confusion. While Treasury is not providing a systemwide guarantee of deposits, it could do so at additional banks if officials deem it systemically risky not to, according to Yellen.

Yellen will repeat her description of the government’s actions with respect to Silicon Valley Bank and Signature Bank.

As I have said, we have used important tools to act quickly to prevent contagion. And they are tools we could use again. The strong actions we have taken ensure that Americans deposits are safe,” the prepared remarks say.



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