WASHINGTON—Treasury Secretary Janet Yellen said banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes.
Yellen said in a “Fareed Zakaria GPS” interview that policy actions to stem the systemic threat caused by last month’s failures of Silicon Valley Bank (SVB) and Signature Bank had caused deposit outflows to stabilize, “and things have been calm,” according to a CNN transcript released on Saturday.
