Yellen: Banks may further tighten lending standards Eliminate the need for further Fed rate hikes

04/16 04:07

In an interview, US Treasury Secretary Yellen said that policy actions taken by the US government to curb the systemic threat posed by the collapse of Silicon Valley Bank and Signature Bank last month have now led to a stabilisation of deposit outflows. In this environment, banks will become more cautious and may further tighten their lending standards in the future. This would lead to restrictions on economic credit, which could eliminate the need for further interest rate hikes by the Federal Reserve. She remains optimistic that the US can avoid a recession and a significant rise in unemployment as the economy cools and inflation slows.
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