(Washington) The recent crisis in the banking sector could lead US banks to be more cautious, and less easily grant loans to households and businesses, according to US Treasury Secretary Janet Yellen, who nevertheless anticipates “moderate growth” in the United States GDP.
U.S. banks could become “a little more cautious” in their operations, Joe Biden’s Secretary of Economy and Finance said in a CNN interview that will air on Sunday, but excerpts from it were published on Saturday.
This could lead to a tightening of credit conditions which, in parallel with the rise in rates, could weigh on economic activity, but also contribute to slowing down inflation.
On Tuesday, at a press conference, Janet Yellen had however indicated that she had “not seen any evidence, at this stage, of a tightening of credit conditions, although that is a possibility”.
Despite the turmoil in the banking sector, the Treasury Secretary also told CNN that her forecast for the U.S. economy remains the same: “I think the outlook remains for moderate growth and a still labor market. strong with declining inflation.”
“I don’t see anything at this time that is dramatic enough or significant enough in my view to significantly change the outlook,” she detailed.