The New York Fed's 10th annual U.S. Treasury Market Conference currently underway right here in Lower Manhattan.

Steve Leaseman is live. He's got a very special guest. Steve.

David, thanks very much. I am here just a couple blocks away from you at the NICI with Treasury Secretary Janet Yellen.

Thank you for joining us, Madam Secretary.

My pleasure. Thanks for the invitation.

So we're here at the Treasury Conference, and they're going to be talking about stability.

You're going to give a speech soon about stability in the market.

Some things have seemed to work out right.

Are we past the period of time where you have concerns about the balance sheets of banks

and their exposure to high interest rates?

And then what are the risks that

you're concerned about? You mentioned in your speech stable coins. You mentioned the non-bank financial

sector. Yes. So we want to make sure through our work with the financial stability oversight

council and more broadly that we have a well-functioning financial system that can contribute to growth.

With respect to the banking system, I believe it's well capitalized, and we did see risk

materialize a year ago. I think we've dealt with those successfully. It did show, though, that a vulnerability is a high level of uninsured deposits in parts of

the banking system and inadequate access to the liquidity that's needed to be able to address deposit runs.

The deposit runs were large and very rapid.

And so a good deal of thought is going into how to shore up the liquidity, the access to

the Fed's discount window for banks that do have uninsured deposits.

Are you looking to Congress to guarantee deposits over $250,000?

That's Congress's mandate now, not something that you can do really broadly under Treasury, Federal Reserve mandate.

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