Yellen said in the 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.
The United States Secretary of the Treasury, Janet Yellenstated that it is likely that the banks continue to restrict lending after recent bank failureswhich possibly nullify the need for further Fed rate hikesaccording to a transcript of a CNN interview released Saturday.
Yellen said in the interview that policy measures to curb the systemic threat caused by the bankruptcies last month of Silicon Valley Bank y Signature Bank had caused deposit outflows to stabilize“and things have calmed down.”
“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 before that episode, and there may be more to come.”
Said that would lead to a credit crunch in the economy that “could be a substitute for further interest rate hikes that the Fed needs to do.”
In mid-March a banking crisis after the bankruptcy of the American bank Silicon Valley Bank, the crisis of the First Republic Bank and the serious problems of the Swiss Swiss credit They have shaken the world markets in recent days, causing fear of a new global financial crisis. This triggered the concern of the monetary entities about the regulations and then the review of possible new increases in the interest rate.
However, economists from Goldman Sachs no longer expect the US Federal Reserve to raise interest rates in Juneaccording to an analysis note published Wednesday following data showing that Consumer prices cooled faster than expected in March.