US Treasury Secretary Yellen speaking in a CNBC intervew
- Says our projection is that as early as June 1 treasury will run out of cash and extraordinary measures to pay government's debts
- Something has to give, it's essential that Congress raise debt ceiling
- Default would be 'huge hit' to u.s. Economy
- If congress doesn't raise debt ceiling, president biden will have to make decisions on what to do with resources, but there are no good options
- Doesn't want to discuss or rank options
- Default would have 'tremendously adverse effects' on financial markets and economy
- Clearly there is a big gap between the president's position and that of Republicans on debt ceiling
- Republican spending proposals are 'draconian'
More:
- We need to have discussions and compromise over fiscal policy in normal budget process, but not with 'a gun' to the head of American people
- Only option that leaves financial system, economy in good shape is raising the debt ceiling
- Compromising credit rating of u.s. Or default would have adverse impact on u.s. Dollar as reserve currency
- We continue to see downward pressure of some regional, community banks
- Government intervened forcefully to reassure deposit holders and to improve liquidity to banks, banks now have stable deposits
- Regulators stand ready to use same tools as in the past if pressures on banks could lead to contagion
- Diversity in banking system is a real strength, regional banks create competition
- Treasury reviewing FDIC report on uninsured deposits
- Stand ready to work with congress to see if there needs to be changes to federal deposit insurance
- Believe there is adequate capital and liquidity in u.s. Banking system
- SEC could take against market manipulation if it was found
- Controls on short selling are a matter for the SEC, there is a high bar for such controls
