Janet Yellen expresses her opinion on banking crisis and OPEC’s decision.
April 6, 2023 12:22 pm
Finance Minister Janet Yellen believes the US has handled the banking crisis well and expressed concern about OPEC’s recent decisions.
In her speech at Yale University, US Treasury Secretary Janet Yellen discussed recent issues in the US banking sector and touched on the decision to cut oil production, adopted last weekend by Saudi Arabia and OPEC. According to her, the US banking system is stable and strong and ready to withstand any shocks. Yellen spoke about the stress in the US banking system after the collapse of several large banks in the first weeks of March and emphasized that the Treasury Department was closely monitoring the situation. The US government does not want to allow the spread of banking problems to other continents.
Yellen also expressed the opinion that actions taken by the Federal Reserve, the Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) helped to resolve almost all the issues. Yellen said that she saw the outflow of funds from small and medium-sized banks decreasing, and the situation was stabilizing.
She also added that although they considered a number of issues, including financial risks, they did not pay enough attention to climate risks. She also expressed her belief that there was no fundamental problem in the banking system. According to her latest statements, the Treasury Secretary gives priority to efforts to combat climate change.
Journalists also asked Yellen what she thinks about OPEC’s decision to cut production and how it might affect prices, inflation, and the economy. Yellen stated that she found it regrettable that OPEC had decided to take this step. She added that they did not know exactly how this would affect prices. She thought they needed to wait a bit to see the whole picture.
Notably, after OPEC’s decision, there were rumors that another spike in energy prices, might trigger a new rise in the overall consumer price index, which has just started to normalize. While the US can cope with this problem without much effort, countries that do not have such resources and are forced to buy at market prices may face problems. Once Europe recovered from the energy crisis following the start of Russia’s military special operation in Ukraine, OPEC added more problems.
As for the technical picture of EUR/USD, bulls still have all the chances to continue the growth and renew the March highs. To do this, they need to stay above 1.0870 and regain control of 1.0930. This will allow them to break out 1.0970. From this level, they can climb to 1.1000 with the prospect of updating 1.1035. In case of a decline, I expect some actions from large buyers around 1.0870. If there is no one there, it would be nice to wait for the update of the 1.0830 low or open long positions from 1.0790.
As for the technical picture of GBP/USD, bulls continue to control the market. However, to develop the trend, it is necessary to return above 1.2460 and break out 1.2520. Only overcoming this level will strengthen hope for further recovery to 1.2560, after which a sharper upward movement around 1.2590 can be discussed. In case of a fall, bears will try to take control of 1.2400. If they manage to do so, breaking this range will hit the bulls’ positions and push GBP/USD down to the 1.2340 low with the prospect of reaching 1.2280.
The material has been provided by InstaForex Company – www.instaforex.com
Finance Minister Janet Yellen believes the US has handled the banking crisis well and expressed concern about OPEC’s recent decisions.
In her speech at Yale University, US Treasury Secretary Janet Yellen discussed recent issues in the US banking sector and touched on the decision to cut oil production, adopted last weekend by Saudi Arabia and OPEC. According to her, the US banking system is stable and strong and ready to withstand any shocks. Yellen spoke about the stress in the US banking system after the collapse of several large banks in the first weeks of March and emphasized that the Treasury Department was closely monitoring the situation. The US government does not want to allow the spread of banking problems to other continents.
Yellen also expressed the opinion that actions taken by the Federal Reserve, the Treasury Department, and the Federal Deposit Insurance Corporation (FDIC) helped to resolve almost all the issues. Yellen said that she saw the outflow of funds from small and medium-sized banks decreasing, and the situation was stabilizing.
She also added that although they considered a number of issues, including financial risks, they did not pay enough attention to climate risks. She also expressed her belief that there was no fundamental problem in the banking system. According to her latest statements, the Treasury Secretary gives priority to efforts to combat climate change.
Journalists also asked Yellen what she thinks about OPEC’s decision to cut production and how it might affect prices, inflation, and the economy. Yellen stated that she found it regrettable that OPEC had decided to take this step. She added that they did not know exactly how this would affect prices. She thought they needed to wait a bit to see the whole picture.
Notably, after OPEC’s decision, there were rumors that another spike in energy prices, might trigger a new rise in the overall consumer price index, which has just started to normalize. While the US can cope with this problem without much effort, countries that do not have such resources and are forced to buy at market prices may face problems. Once Europe recovered from the energy crisis following the start of Russia’s military special operation in Ukraine, OPEC added more problems.
As for the technical picture of EUR/USD, bulls still have all the chances to continue the growth and renew the March highs. To do this, they need to stay above 1.0870 and regain control of 1.0930. This will allow them to break out 1.0970. From this level, they can climb to 1.1000 with the prospect of updating 1.1035. In case of a decline, I expect some actions from large buyers around 1.0870. If there is no one there, it would be nice to wait for the update of the 1.0830 low or open long positions from 1.0790.
As for the technical picture of GBP/USD, bulls continue to control the market. However, to develop the trend, it is necessary to return above 1.2460 and break out 1.2520. Only overcoming this level will strengthen hope for further recovery to 1.2560, after which a sharper upward movement around 1.2590 can be discussed. In case of a fall, bears will try to take control of 1.2400. If they manage to do so, breaking this range will hit the bulls’ positions and push GBP/USD down to the 1.2340 low with the prospect of reaching 1.2280.
The material has been provided by InstaForex Company – www.instaforex.com
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