2023-04-15 19:15:15
The United States Secretary of the Treasury, Janet Yellensaid banks are likely to continue to tighten lending after the recent bank failures, possibly negating the need for further interest rate hikes Federal Reserveaccording to a transcript of a CNN interview published Saturday.
Yellen said in the “Fareed Zakaria GPS” interview that policy measures to curb the systemic threat caused by the failures of Silicon Valley Bank and Signature Bank last month had caused deposit outflows to level off, “and things have calmed down. “.
“Banks are likely to become a bit more cautious in this environment,” he said in the interview scheduled to air on Sunday.
We already saw some tightening of lending standards in the banking system before that episode, and there may be more to come.”
He said that would lead to a credit squeeze in the economy that “could be a substitute for further interest rate hikes that the Fed needs to do.”
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