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Janet Yellen: Some banks may be ‘quite stressed' by empty office building trouble

·1 min

Treasury Secretary Janet Yellen recounted the efforts made by US officials in March last year to prevent the collapse of Silicon Valley Bank from causing broader economic damage. Yellen emphasized the urgency of the situation and the steps taken to avoid a banking system crisis. She highlighted the mismanagement of interest rate risk and heavy reliance on uninsured deposits by Silicon Valley Bank, which resulted in the largest and fastest bank run in US history. Yellen also expressed concerns about the commercial real estate sector and its impact on regional banks. Despite these challenges, she expressed confidence in the American economy, citing robust job growth. Addressing the national debt, Yellen stressed the need for fiscal sustainability and supported President Biden’s budget proposals. She mentioned that the US economic recovery outperforms other major countries and highlighted the decline in inflation.