WASHINGTON, April 15 (Reuters) - U.S. Treasury Secretary
Janet Yellen said banks are likely to tighten lending further in
the wake of recent bank failures, possibly negating the need for
further Federal Reserve rate hikes, according to a CNN interview
transcript released on Saturday.
Yellen said in the "Fareed Zakaria GPS" interview that
policy actions to stem the systemic threat caused by last
month's failures of Silicon Valley Bank and Signature Bank had
caused deposit outflows to stabilize, "and things have been
calm."
"Banks are likely to become somewhat more cautious in this
environment," Yellen said in the interview scheduled to air on
Sunday. "We already saw some tightening of lending standards in
the banking system prior to that episode, and there may be some
more to come."
She said that would lead to a restriction in credit in the
economy that "could be a substitute for further interest rate
hikes that the Fed needs to make."
(Reporting by David Lawder and Daniel Burns; Editing by Andrea
Ricci)
david.lawder.thomsonreuters.com@reuters.net))
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