Deposit flows in U.S. banks appear “relatively stable,” while inflation remains too high and may well take longer than expected to decline, Richmond Federal Reserve Bank president Thomas Barkin said in comments that kept the policy focus on inflation despite recent stress in the banking industry.
“It’s worth remembering that not every bank failure becomes Lehman Brothers,” Barkin said, referring to the banking collapse that helped spark a financial crisis 15 years ago.
“There are still, to be sure, a few individual banks working through their own issues,” Barkin said in comments prepared for delivery to the Virginia Council of CEOs. But “banks have worked with intensity to ensure they have adequate liquidity. And, as I’ve talked to banks in my district, I’ve been encouraged by the resilience I’ve seen.”