In remarks prepared for the American Bankers Association, Treasury Secretary Janet Yellen says the U.S. banking system is “sound” but more rescue arrangements “could be warranted” if new failures at smaller institutions pose a risk to financial stability. here's the "rub" . . .
Yellen's small bank comments were released under embargo at 7am. Treasury wanted them out before markets opened, as Yellen speech isn't until 10am.
That tells everyone that Yellen and company still see the ongoing Banking "crisis" as dangerous, and they are deliberately trying to calm markets.
Trouble is, Jerome Powell over at the Federal Reserve has a meeting this week about raiding interest rates again. His choice is now stark:
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