(Finance) – The Secretary of the Treasury, Janet Yellensaid his department is working on series reforms of the bond market, as a result of the increased uncertainty of the economic outlook. The US bond market, whose yields have risen along with interest rates, is experiencing higher transaction costs and levels of liquid assets lower, according to Yellen. “We want to make sure that our Treasury markets remain strong, liquid and well-functioning in the future,” said the secretary speaking at an event in New York. “The brokerage capacity of broker-dealer in that market it did not grow in line with the size of the market. So we’re looking at a number of ways to improve resilience, ”she explained.
Yellen added that the SEC (the stock exchange regulator) is considering initiatives to offset the volatility of the financial markets. “So far, the US financial system has not been a source of economic instability”, the Treasury Secretary continued, stating that “our system remains resilient and continues to function well despite the uncertainties”. Yellen also warned about potential problems in the so-called system banking shadowthat is, of all those financial institutions that lend money without being classified as banks and therefore with less stringent regulations.