US President Joe Biden has sent a message of peace of mind for the banking system and has stated that while it will take time for the situation to calm down, he does not see an “explosion” on the horizon. “I think it’s going to take a bit of time for things to settle down, but I don’t see anything on the horizon that’s about to explode“, the US president assured at a press conference in Ottawa together with the Prime Minister of Canada, Justin Trudeau.

Despite this reassuring message, Biden has expressed that he understands the existence of “some discomfort”, but has defended that his government has done “a good job” to ensure that Americans can access their savings, and that the country’s banks have sufficient funds.

Biden’s message is included in the attempts by his government to calm the marketsensuring that the US banking system is solid and that the authorities will adopt measures to guarantee savings in the face of the crisis unleashed in recent weeks by the bankruptcy of two banks in the country and the rescue of a third.

Panic also crossed the Atlantic and almost wiped out Swiss bank Credit Suissewhich finally had to be acquired last weekend by its competitor UBS after the crisis of confidence that was sinking its share price on the market.

In this regard, Biden has stated that “what is happening in Europe is not a direct consequence of what has happened in the United States”, but has reiterated that his government will guarantee the savings of Americans.

The financial situation of the two US banks that have failed, the Silicon Valley Bank (SVB) and Signature Bankworsened by the Fed’s monetary policy, which has been raising interest rates since March of last year to combat inflation.

In this way, the Fed decided to raise rates once more this week0.25 points, to place them in a range between 4.75% and 5%, although the president of the Fed, Jerome Powell, did not rule out that the central bank could pause these increases at its next meeting.

This Friday, the large European banks registered another day of bulging falls in the bag dragged down by the decrease of more than 10% of the Deutsche Bank after announcing to repay subordinated debt before its maturity.

For his part, Wall Street closed the week with increases of more than 1% in its main indicators despite concerns about the banking sector and the echoes of the financial crisis, focusing more on the messages and actions of those responsible for finance and monetary policy.