Yellen Stresses Importance of Banking Supervision, Regulation of Capital, Liquidity, Risk Amid Concerns Over Trump’s Moves

U.S. Treasury Secretary Janet Yellen emphasized the critical importance of banking supervision in reducing the risk of bank failures and financial crises. In response to inquiries about former President Donald Trump's consideration of moves to shrink or eliminate bank regulators, Yellen stated that the current U.S. banking system is not broken. She warned against interfering with the appropriate regulation of bank capital, liquidity, and risk-taking, asserting that these factors are essential for maintaining a sound banking system and economy. Additionally, federal regulators have raised concerns about the volatility of cryptocurrencies and their potential impact on the broader economy, highlighting the need for careful assessment of financial products and companies to ensure stability in the markets.