US financial system in good shape: Regulators tell Biden

    Fiscal regulators assured President Joe Biden on Monday that the US financial system was in good shape and that financial risks were being mitigated by strong liquidity in the banking system, the White House said.

    White House officials said that Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and Chief Currency Auditor Michael Hsu , were among those who met Biden.

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    The meeting was Biden’s first face-to-face meeting with many of the top federal regulators in the banking and financial markets, including Powell.

    The head of the Fed was appointed by former President Donald Trump.

    “Regulators have reported that the financial system is in a strong position. They have also shown that financial risks are mitigated by strong levels of capital and liquidity in the banking system and sound household balance sheets resulting from fiscal support and continued economic recovery.” The White House said in a statement.

    No political decisions are expected at the regular meeting, said White House spokeswoman Jen Psakis.

    Biden seeks to use trillions of dollars in government spending to trigger a strong recovery from the coronary recession that has put millions of Americans out of work.

    A near-12% gain in the S&P 500 this year helped fuel hopes for a strong recovery, but markets are closely monitoring government inflation and borrowing costs for signs of trouble.

    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 had made “steady progress” in Biden’s climate-related executive mandate and discussed ideas for promoting economic integration and “responsibly increasing access to credit for potential homeowners and small businesses “.

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