(Washington Comprehensive) U.S. Treasury Secretary Yellen said that although the recent bank industry turmoil has caused people's concerns about economic recession, she expects the US economy to continue to grow.
The Bank of Silicon Valley Bank and the Mark Bank of China closed down in March this year, shocking the market.Although the crisis has gradually subsided, analysts believe that as banks tighten the loan standards and reduce the credit of families and enterprises, the surplus waves of the banking industry may continue to affect economic growth.
However, Yellen said in an interview with Agence France -Presse on Thursday (April 6): "I still expect the US economy to grow, the labor market will remain strong, inflation will decline."
Before Yellen interviewed, Jamie Dimon, president of Morgan Chase, warned that the current crisis has not yet ended, and it will continue to feel the impact in the next few years.
He pointed out that although the current situation is not as bad as the 2008 financial crisis, it is impossible to predict when the problem will end.
In this regard, Yellen said that she will continue to work to ensure the security of all deposits and is monitoring the banking system. The government also "prepares to use all tools for any scale to ensure that the banking system is safe and stable."
She emphasized that the US banking system has strong capital and strong liquidity."Our banking system is sound and tough ... The actions we have taken are designed to strengthen this, and we must keep the public confidence in the banking system."
Rupji, chief economist of FWDBonds, New York Investment Institution, said: "Whether credit tightening will slow down the economy, it will take a few months to know."
Non -agricultural employment data released by the United States on Friday (April 7) shows that the economic situation in the first quarter of the United States is still strong.
Data show that the number of non -agricultural employment in the United States increased by 236,000 in March, which is not far from the estimation of the economist, and the unemployment rate drops to 3.5%.
However, there are also signs of cooling in the US economy, and the annual wage growth rate of employees has the lowest since June 2021.
The Chief Economist of insurance and finance company Nationwide, Bosyyan, said: "Although the data is a bit worried, the labor market is strong, inflation is still high and still sticky, which is enough to promote the Federal Reserve to raise interest rates again in May by 25 again.Base point. "
Bloomberg Economist Wang Anna and Paul believe that the speed of the labor market's softer slowdown shows that the unemployment rate may be lower than the expected medium value of the Fed's Open Market Committee (FOMC), which is 4.5%.In this case, "the Federal Reserve has to raise interest rates several times after May."
