Crypto: Federal Reserve, FDIC, OCC release joint statement on monitoring liquidity

Markets alongside the world of crypto still watching recent comments from the Fed, the San Francisco's Fed President Mary Daley and Atlanta Fed President Rafael Bostic wrapping up ongoing remarks. Meanwhile, the Fed out with recommendations on crypto deposits. Here are the latest. Yahoo finances Jennifer Schoenberger. Hey, Jen. Good morning. The fellow reserve, the FDIC and the OCC all out with a joint statement this morning encouraging banks that host deposits from crypto firms to monitor liquidity and ensure that there are proper risk management practices in place to guard against runs.

Those agencies warning that the deposits that the banks are hosting could be susceptible to great stress in markets and volatility. Now, while these agencies are encouraging using existing risk management practices, they are not requiring new standards be put in place. Specifically amongst those recommendations, understand what could impact deposits from crypto firms and how susceptible those deposits are to volatility, assess interconnectedness across deposits from crypto assets and liquidity risks, and have a contingency plan in place and stress test that liquidity and really monitor those crypto deposits. Now, separately, we're just hearing from Atlanta Fed President Rafael Bostic who was speaking in Atlanta who happened to mention in conversation with former Kansas City Fed President Esther George that they need to be careful to expand the reach of fintech in the financial system, especially as it relates to payments. And that's one of the reasons why the Fed has been slow to open up the payment system to crypto in fintech so rapidly. Rachelle? And certainly crypto wasn't something I'm sure the Fed was anticipating. They would have to be covering as well.

And of course, we're also tracking comments from Treasury Secretary Janet Yellen. What's the latest there? That's right, Rachelle. Treasury Secretary Janet Yellen speaking overnight in Bangalore, India as she is on the ground there for the G20 hosting a press conference. Yellen saying the global economy is in a better place today than predicted months ago, and that the U.S. economy has been resilient with inflation moderating over the past couple of months and the job market remaining strong. She said, quote, that policymakers need to be attentive to the spillovers of macroeconomic tightening from major economies to the rest of the world.

And she says, while there's much work to do, we're beginning to see lower headline inflation around the world. She said in emerging markets, financial conditions remain relatively tight, but have begun to show signs of easing. Now, ahead of that one-year anniversary tomorrow of Russia's invasion of Ukraine, Secretary Yellen standing in solidarity with Ukraine, reiterating the U.S.'s support, saying that we will be in the fight with Ukraine for as long as it takes. Rachelle? All right. Thank you for that update.

Jennifer Schoenberger there for us.

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