Yellen: Banks are now able to pay dividends and buy back shares

US Treasury Secretary Janet Yellen said today on the second day of testifying in Congress alongside Federal Reserve Chairman Jerome Powell that US banks appear healthy enough to be allowed to pay dividends and buy back shares. In response to a question from Senate Banking Committee Chairman Sherrod Brown whether she opposes banks paying dividends and stock buybacks, Yellen explained that she opposed it in the past, but financial institutions look healthier now and must have some capacity while adhering to the rules to achieve returns for shareholders.

Federal Reserve Chairman Jerome Powell, in response to a Senate member’s question about the economic outlook, confirmed that "it will be a very strong year in the most likely case" as the economic recovery of the United States develops faster than expected.