Yellen predicts US banks to tighten lending, impacting rate hikes and inflation.

US Treasury Secretary Janet Yellen said banks may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. Yellen said banks are likely to become more cautious, leading to a restriction in credit in the economy that "could be a substitute for further interest rate hikes that the Fed needs to make." Yellen also acknowledged potential risks of US-led sanctions and export controls on Russia, including the erosion of the dollar's role as the world's reserve currency.