US Banking system remains "sound and resilient"

A direct quote from the minutes of the March 2023 Federal Reserve Open Market Committee meeting is:

Participants agreed that the US banking system remained sound and resilient.

Does this give you a warm and fuzzy feeling? Is the above quote the new "inflation is transitory" meme? I humbly ask this esteemed group for its insightes.

Thank you in advance for the well thought-out, civilized and insightful discussion that I'm sure will ensue.

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SusanInFlorida · 31-35, F

Although I am not a huge fan of Janet Yellen or the federal reserve, one has to admit the following:

1. Several regional banks were taken over by the FDIC. Large banks immediately began due diligence to buy the assets of the failed institutions

2. The dollar did not drop

3. The chinese yuan and russian ruble did not soar

4. expectations for a recession later this year continue to be based on Fed Funds rate increases, not risk taking by regional banks

I don't believe Banking Regulators are smart enough to do a better job than they already do. If they were, they would have flagged SVB, whose CEO is a Federal Reserve Board of Governors member.

The US financial system is better than most other nations, but constantly struggles to keep up with and assess the risk of things like "633 crypto currencies"; demands by china that it's yuan (worth 7 cents) replace the dollar in global trading; an unexpected war in Europe; the Covid 19 pandemic; reckless federal deficit spending by both US political parties; major counterfeiting of US Currency by North Korea; identity theft on an ever expanding scale.

irishmolly72 · 56-60, F

@SusanInFlorida Are you pro some sort of Balanced Budget Amendment? How about the Taylor Rule for the Fed?

SusanInFlorida · 31-35, F

@irishmolly72 i have never advocated a balanced budget. But if the american electorate feels this is the only way to tame runaway spending, I say their voices should be heard.

The problem with "balanced budget" is that so many career politicians use this as a reason to propose fantastic tax increases.

If you tote up all the democrat proposed bills submitted to congress every session, the spending generally runs in the $10-$20 trillion range. More than 3X the actual amount we already spend.

there is a huge disconnect between the impulse of politicians to give away "free stuff" to ensure their re-election, and our ability to pay for their "generosity."