Yellen cautions on potential lending restrictions by US banks.

Treasury Secretary Janet Yellen has warned that banks may further tighten lending standards following the recent collapses of Silicon Valley Bank and Signature Bank. Yellen stated that the Biden administration has taken rapid action to deal with the bank failures, and the banking system has stabilized after those actions were taken. However, the banks' caution may lead to greater restrictions in credit, which could be a substitute for further interest rate hikes that the Fed needs to make. Yellen believes that the outlook remains one for moderate growth and continued strong labor market with inflation coming down.