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| Your Tuesday Evening Briefing | Your Tuesday Evening Briefing |
| (2 days later) | |
| (Want to get this newsletter in your inbox? Here’s the sign-up.) | (Want to get this newsletter in your inbox? Here’s the sign-up.) |
| Good evening. Here’s the latest at the end of Tuesday. | Good evening. Here’s the latest at the end of Tuesday. |
| 1. Seeking to calm concerns, lawmakers are pushing to raise the cap on insured bank deposits. | 1. Seeking to calm concerns, lawmakers are pushing to raise the cap on insured bank deposits. |
| Members of Congress were in discussions to introduce bipartisan legislation as early as this week that would temporarily increase the insured deposit cap on certain accounts — like those used for activities such as payroll — to convince depositors to stop pulling their money out of small and midsize banks. | Members of Congress were in discussions to introduce bipartisan legislation as early as this week that would temporarily increase the insured deposit cap on certain accounts — like those used for activities such as payroll — to convince depositors to stop pulling their money out of small and midsize banks. |
| It’s unclear how broad support would be for the proposal. Some Republicans have opposed lifting the cap, which could remove a disincentive for banks to take on risk. Others, including Senator Elizabeth Warren, have suggested removing the deposit cap altogether. | It’s unclear how broad support would be for the proposal. Some Republicans have opposed lifting the cap, which could remove a disincentive for banks to take on risk. Others, including Senator Elizabeth Warren, have suggested removing the deposit cap altogether. |
| Treasury Secretary Janet Yellen also said that the stresses to the financial system constituted a “crisis” and that the Biden administration was ready to take steps to calm fears over the stability of U.S. banks. | |
| Tomorrow, Jerome Powell, the chair of the Federal Reserve, is likely to face a grilling about why his institution failed to stop problems at Silicon Valley Bank. The central bank also faces a difficult decision over whether to raise interest rates. In Opinion, Paul Krugman explored the dilemma. |