US Treasury Secretary Yellen: Prepared for additional deposit actions 'if warranted'

Treasury Secretary Janet Yellen, Council of Economic Advisers Chair Cecila Rouse, and Office of Management and Budget Director Shalanda Young are delivering their testimony before the House Appropriations Financial Services Subcommittee.

Treasury futures are climbing higher across the board in late trade as a result.

Watch live

The prepared text came out earlier than expected: Yellen was expected to say, "we have used important tools to act quickly to prevent contagion. And they are tools we could use again," she said in prepared testimony to Congress.

"The strong actions we have taken ensure that Americans' deposits are safe. Certainly, we would be prepared to take additional actions if warranted."

Key notes

Prepared for additional deposit actions `if warranted'.
Strong actions have been taken to ensure deposits are safe.

Important anti-contagion tools could be used again.
Seeing reduced pressure on supply chains, lower shipping costs - us house appropriations subcommittee hearing.
Easing supply pressures will eventually pass through to lower inflation.

Confident USD will remain global reserve currency.

Front-month 30Y futures tap 132-01, 30Y yield 3.6690% low, while yield curves continue to climb off deeper inverted levels.

Implied rate cuts by year end accelerate with Dec'23 cumulative -86.6 at 3.946%, Fed Terminal slips to 4.89% in May.

Meanwhile, Wednesday's testimony from Treasury Secretary Yellen weighed on stocks after stating the Tsy is "not considering broad increase in deposit insurance", at odds with Chairman Powell's comment supportive of regional banks.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.