Fed Chair Powell: 'I believe' Treasury payment system is safe

Published On Feb 11, 2025, 12:30 PM

Federal Reserve Chair Jerome Powell affirmed the safety and integrity of the Treasury payment system during a Senate Banking Committee hearing. He addressed concerns about access to the system, asserting strong commitment to its efficacy and resilience. Powell also clarified that the Fed does not control the spending decisions related to the Treasury and emphasized the critical role of consumer finance regulation supported by the Consumer Financial Protection Bureau (CFPB). Powell noted the importance of fresh perspectives on banking regulations and indicated readiness for upcoming changes and collaborations among financial regulatory bodies.

Stock Forecasts

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The reassurance from Powell about the safety of the Treasury payment system could bolster confidence in U.S. financial systems, positively impacting market sentiment. Moreover, as regulations evolve, financial institutions may adapt and find growth opportunities in a solid regulatory environment.

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