Biden Says White House Response To Banking Crisis 'Not Over Yet' But Uncertain About 'Legislative Change'

President Joe Biden said on Tuesday the White House response to the banking crisis was “not over yet” and that his administration was considering legislative changes, although that could prove difficult in the split Congress.

What Happened: "No, it's not over yet. We're watching it very closely. I think my team has handled it very well so far. And rather than get ahead of myself here, I think let's let things move the way they are," Biden said, according to a White House statement.

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The President expressed confidence on how the crisis is settling down but also indicated his doubts on legislative changes.

"Well, I think we've done what we need to do executively. I feel confident things are settling out. The — the markets seem to be responding. And so — But I'm not sure whether we get much legislative change. But we're looking at that as well," Biden said.

Federal Reserve Vice Chair for Supervision Michael Barr, on Tuesday, cited the failure of Silicon Valley Bank as a "textbook case of mismanagement," and has proposed tightening of banking rules, according to Financial Times.

Price Action: U.S. markets closed in the red on Tuesday. The SPDR S&P 500 ETF Trust (NYSE:SPY) closed 0.22% lower, while the Invesco QQQ Trust Series 1 (NASDAQ:QQQ) lost 0.53%.

Investors and traders will now be watching out for the release of the Personal Consumption Expenditures price index this week, which is the Fed's preferred measure of underlying price pressures.

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