WASHINGTON – Financial regulators assured President Joe Biden on Monday that the U.S. financial system is in good shape and that financial risks are being mitigated by the banking system’s high liquidity, the White House said.
White House officials said Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and Acting Currency Comptroller Michael Hsu, as well as heads of the Commodity Futures Trading Commission, Securities and Exchange Commission and the Consumer Financial Protection Bureau were among those who met with Biden.
The meeting was Biden’s first face-to-face encounter with many of the top federal banking and financial market regulators, including Powell. The head of the Fed was appointed by former President Donald Trump.
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“Regulators have signaled that the financial system is in good shape. They further indicated that financial risks are mitigated by strong capital and liquidity levels in the banking system, and healthy household balance sheets resulting from the ongoing budget support and economic recovery, ”he added. . The White House said in a statement.
No political decisions were to be made at the routine meeting, White House press secretary Jen Psaki said.
Biden is looking to use trillions of dollars in government spending to trigger a strong rebound from the coronavirus-triggered recession that has put millions of Americans out of work.
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A nearly 12% gain in the S&P 500 stock index this year has helped fuel hopes of a strong recovery, but markets are watching inflation and government borrowing costs closely for signs of difficulties.
Biden issued an executive order in May urging federal agencies to encourage full disclosure of often hidden climate-related risks to banks, other financial institutions and the federal government.
The White House statement on the meeting said regulators said they were making “steady progress” on Biden’s climate-related decree, and discussed ideas to promote financial inclusion and to “scale up” responsible access to credit for potential homeowners and small businesses ”.