US Treasury Secretary Warns Banks May Slash Lending, Slowing Economy

Janet Yellen, the US Treasury Secretary, said banks are likely to tighten lending standards in the wake of recent failures, which could slow economic growth.
The reduced access to credit could negate the need for further interest rate hikes from the Federal Reserve, according to Yellen.
While optimistic about the broader economy, Yellen acknowledged she previously underestimated the threat of higher inflation.
The Treasury has no plans for a blanket guarantee of all bank deposits but is working to strengthen regulation and oversight of the banking system.
Yellen agreed Russia should face consequences for damaging Ukraine's economy but said legal constraints limit options for using frozen Russian assets.