“Last month, the government took necessary actions to decisively manage the fallout from the failure of two regional banking institutions. Our goal was to mitigate the serious risk of contagion and protect the broader banking system and economy. The situation has stabilized in the past few weeks. And our banking system remains sound, with strong capital and liquidity positions. Of course, we continue to be vigilant and monitor conditions closely.”

“Still, these developments have reminded many of the fear and uncertainty that can accompany financial disruptions. For all in this room, I am certain that the developments underscored the importance of our work on financial stability: to continue to improve the resilience of a financial system that can support the economy through both good and bad times.”