President Biden faces a new pressure test after failures of strategic banks
The President of the United States of America finds himself caught in troubled waters as he prepares his administration to deal with the banking crisis that can potentially disturb the financial markets. However, it wasn’t the first time for him as just a few days after he became the vice president in 2009, the Great Depression shocked the consciousness of the United States of America.
Back then, he doubted the efficiency of the administration, but today he is pretty headstrong in avoiding ambiguity. He is leaving no stone unturned to reassure the financial markets and make it convenient for customers to access their money in the bank. In a recent interview at the White House, he confirmed that all Americans would have their deposits whenever needed by outlining his government’s steps to mitigate the crisis.
Biden’s efficiency in handling the economy at this hour proves to be the biggest challenge for his Government. However, the public poll does not illustrate any such approval. According to a research poll conducted by a non-government organization, less than 33% of the Americans approve of his ways to restructure the economy. The public’s trust has been misplaced since the failure of the two American banks, namely the Silicon Valley Bank and the Signature Bank.
The economy has been caught in a vicious circle for the time being. The Federal Reserve is finding it tough to control inflation, and the stocks seem to have hit the lowest ever since 2008. While the Government fails to acknowledge the impending recession, the statistics prove otherwise. The administrators continue to believe in the strength of the American Economy.
After analyzing the gravity of the situation, Biden decided to step in. In a remedial measure, the Federal Reserve is acting in unison with other institutions and has recently issued bank guarantees. This assures, the intent of the Government to repay the deposits on demand. According to Treasury Secretary Janet Yellen, despite the administration not being out of the woods, the economy is stabilizing.