Federal Reserve Chairman Jerome Powell recently announced that the banking system is still safe, despite the collapse of US banks Silvergate, Silicon Valley Bank (SVB), and Signature Bank, which were thought to be caused by the Federal Reserve’s drastic interest rate increase since the beginning of the year. However, Twitter CEO Elon Musk are expressing their lack of faith in the US banking system.
Shibetoshi Nakamoto, the creator of Dogecoin, sarcastically remarked that the US banking system is unaffected by the collapse of three banks because it has only one bank with unlimited funds
. Musk, on the other hand, noted that the movement of funds to deposit elsewhere occurs when people choose to move their money from low-interest savings accounts to higher-interest money markets like treasury bills, and raising interest rates by the central bank worsens the deposit movement situation.
While netizens expressed concerns about whether the Federal Reserve will continue increasing rates or not, Elon Musk pointed out that the foolish rate hike will worsen depositor flight. The fate of US banks remains uncertain, and it remains to be seen what policy the US Federal Reserve will issue.
Many are wondering if the US banking system is still safe and if the collapse of these banks will have a widespread effect on other banks worldwide. Shibetoshi Nakamoto’s comment about the US banking system having only one bank and unlimited money was met with skepticism by many Twitter users who do not share his confidence in the system.
Despite Jerome Powell’s assurance that the banking system is still safe, it seems that there are concerns about the policy issued by the US Federal Reserve and the potential impact it may have on the banking industry. It remains to be seen how the situation will develop and what measures the Federal Reserve will take to address the concerns of the public and the banking industry.
#ElonMusk #Shibetoshi #Dogecoin #Fed #azcoinnews
This article was republished from azcoinnews.com
