The Fed and the Federal Deposit Insurance Corporation announced they are conducting separate reviews into their oversight of US banks in light of the collapse of SVB and Signature Bank. Both have said they will publish their findings by May 1.
The programme will make liquidity available to US depository institutions in the form of advances against certain types of securities as collateral.
Yellen, in an excerpt of remarks prepared for delivery to the American Bankers Association on Tuesday, says that overall the situation is stabilising."
The consecutive bank failures are the sector's biggest casualties since the 2008 financial crisis, prompting US authorities to quickly step in to protect depositors.
In its latest bank supervision report, the Fed offered an upbeat take on the strength of US banks, noting they continue to enjoy robust capital and liquidity levels, and asset quality improved in the second half of 2021
The US Federal Reserve Bank is taking a closer look at the US units of Europe's biggest banks, concerned that a euro zone debt crisis could spill into the US banking system, the Wall Street Journal reported.
As far as the US market is concerned, it is still in the process of making gradual recovery. In an interview to CNBC-TV18, Laurence Fink, chairman and CEO of BlackRock said that the US equity market is still one of the most underinvested classes of assets.