The U.S. banking system is facing "serious challenges", but the Federal Reserve will continue "to ensure that the banking system remains safe and sound and is able to meet the credit needs of our economy," Fed Governor Elizabeth Duke said before the House Financial Services Committee on Wednesday.
While the Fed Governor gave lawmakers little new information regarding the state of the economy or monetary policy, she did point out that as the global economy begins to recover, the U.S. will need a strong and stable financial system to provide the credit needed to promote growth.
She also assured lawmakers that the Federal Reserve is working closely with regulatory authorities in the United States to find ways to strengthen the U.S. financial system, and limit future financial crises down the road.
Her comments came just hours after the U.S. Treasury unveiled its intention to request additional powers to unwind both non-bank and systemic institutions.
By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2009