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CNN —Bill Maher recently said on his show that the 2024 election was going to be fought over two issues: immigration and abortion. Each party has an advantage, the Democrats on abortion and the Republicans on immigration. Now, it’s abortion rights voters who are energized, fueled by states like Arizona that are putting in place draconian restrictions on abortion. With the margins small in many swing states, abortion could be the issue that brings out suburban women, who could tilt those states blue in November. Joe Biden needs to be caught trying to solve the immigration crisis.
Persons: Fareed Zakaria, Fareed, Read, Bill Maher, Roe, Wade, Donald Trump, Trump, Joe Biden, don’t, Biden, Alejandro Mayorkas, Bill Clinton Organizations: CNN, Fareed’s, Republican Party, Republican, Trump, US, EU, Homeland, Democratic, Senate, National Guard Locations: Arizona, America, Sweden, United States, New York City, El Paso, Stockholm, Europe
Opinion: Why a booming economy isn’t helping Biden
  + stars: | 2024-03-24 | by ( Fareed Zakaria | ) edition.cnn.com   time to read: +9 min
It used to be that the public’s view of the president depended mostly on its view of the economy. Democrats who had previously thought the economy was in terrible shape now thought it was booming, and Republicans did the opposite. I argue in the book that it is identity — which encompasses culture, class and tribalism. And when people see their world in flux, they often move not left on economics but right on culture. The left needs to play more effectively on the new crossroads of politics, where culture and class have replaced economics.
Persons: Fareed Zakaria, Fareed, Read, Joe Biden’s, haywire, It’s, Nate Cohn, Barack Obama’s, Donald Trump, , Trump, Ronald Inglehart, , Inglehart, John Burn, Organizations: CNN, Fareed’s, The New York Times, Immigration, Trump Locations: America, Sweden, Denmark, France, Austria, Germany, Japan, United States, Nigeria
Editor’s Note: Fareed Zakaria is the host of Fareed Zakaria GPS, airing at 10 a.m. and 1 p.m. ET and PT tonight on CNN, Fareed’s latest special report, “Taiwan: Unfinished Business,” will examine the complicated history and present dangers surrounding Taiwan. The backdrop to the tensions over Taiwan is, of course, the expanding geopolitical rivalry between China and the United States. Washington has been willing to accept China’s claims on Taiwan as long as it did not use coercion to achieve them. This is one place on Earth where there should be little room for macho rhetoric and provocative actions.
Persons: Fareed Zakaria, Fareed, Read, Fareed’s, , , Xi Jinping, Donald Trump, Graham Allison, , Joe Biden, Brendan Smialowski, Mao Zedong Organizations: CNN, Fareed’s, Unfinished, Harvard, Economic Cooperation, APEC, Getty, America Locations: Taiwan, China, United States, Soviet, Asia, Woodside , Calif, AFP, Soviet Union, Pakistan, India, People’s Republic of China, Communist China, Washington, Beijing
CNN —House Speaker Mike Johnson has the fate of a democracy and a people in his hands. It’s not the United States, which will survive – even if the coming general election results in another existential test for the constitutional system. Johnson, a backbencher who was the last-ditch choice to lead the mutinous House GOP majority last year, could relieve Ukraine’s agony and help ensure its survival as an independent nation in the coming days. Nothing can be guaranteed in a fractious Congress, with a House GOP majority that has rendered the United States close to ungovernable and is threatening America’s global leadership role. And history is watching whether Speaker Johnson will put that bill on the floor.
Persons: Mike Johnson, It’s, Johnson, Vladimir Putin, , Donald Trump, speakership, Joe Biden, Kevin McCarthy, Volodymyr Zelensky, CNN’s Kaitlan Collins, McCarthy, Hakeem Jeffries, Mitch McConnell, Chuck Schumer —, , Jake Sullivan, ” Sullivan, Putin, ” Trump, Trump, Biden, ” Rep, Byron Donalds of, ” Zelensky, , ” Johnson, David Cameron, Marjorie Taylor Greene, Radoslaw Sikorski, ” Sikorski, CNN’s “ Fareed Zakaria, Seth Moulton of, Xi, ” Moulton, Frederick Kagan Organizations: CNN —, GOP, Pentagon, Democratic Senate, White, Trump, Republican, Democratic, Ukraine, ” Biden, Biden, Washington, Democrats, House Republicans, , CNN, British, ” Democratic, Seth Moulton of Massachusetts, CNN News Central, NATO, American Enterprise Institute Locations: United States, Ukraine, Russia, Kyiv, Louisiana, Western, Moscow, ungovernable, “ State, America, America’s, Byron Donalds of Florida, Zelensky, Marjorie Taylor Greene of Georgia, British, Asia, Taiwan, Japan, China, Ukrainian
Opinion: Why Iran hates America
  + stars: | 2024-02-24 | by ( Fareed Zakaria | ) edition.cnn.com   time to read: +7 min
Iran, and particularly its hostile relationship with the US, is firmly at the center. The story is more complicated than that, as I lay out in my CNN special report “Why Iran Hates America,” airing Sunday at 8 p.m. and 11 p.m. But suffice it to say that America’s relationship with Iran has been hostile and confrontational for more than four decades. Washington has viewed the fall of the Shah’s Iran as a deep betrayal from which it has never really recovered. As Iranian Foreign Minister Javad Zarif pointed out to me, the Iran nuclear deal was premised not on trust but on mistrust.
Persons: Fareed Zakaria, Fareed, Read, CNNi, Yemen’s Houthis, jihadism, Majid Saeedi, Iran’s, Shah, Jimmy Carter, It’s, Ronald Reagan, George W, Bush, Barack Obama, Hassan Rouhani, Javad Zarif, premised, Donald Trump, Rouhani Organizations: CNN, Fareed’s, Sunday, US, Iranian, Washington Locations: Iran, Israel, Gaza, An Iran, Jordan, Washington, Tehran, Britain, Iraq, Afghanistan, Libya, , Moscow, Roman, America, United States
Opinion: Conflict is the new normal
  + stars: | 2024-02-23 | by ( Fareed Zakaria | ) edition.cnn.com   time to read: +6 min
Editor’s Note: Fareed Zakaria is the host of Fareed Zakaria GPS, airing at 10 a.m. and 1 p.m. But conflict is the new normal. The war is going badly for Ukraine, which is critically outgunned and outmanned by its much larger adversary. The IDF’s goal is to weaken Hezbollah to the point that the roughly 80,000 Israelis who fled their homes in northern Israel can return. At some point, Hezbollah might respond forcefully, which could trigger an Israeli incursion into Lebanon, truly widening the war.
Persons: Fareed Zakaria, Fareed, Read, Vladimir Putin, Benjamin Netanyahu’s, Netanyahu, Amir Levy, , don’t Organizations: CNN, Fareed’s, European, Gulf, Israel Defense Forces, United, British Navy, Republicans Locations: Ukraine, Europe, Russia, European, North Korea, Cuba, China, India, Turkey, Gulf States, Gaza, Hamas, British, Palestinian, Israel, Lebanon, North, Suez, United States, Red
Today, people come to the border and rather than running away from the law they run toward it. “He is enforcing the laws; the problem is that the laws need to change.”It’s not just the laws. But again, that requires changes to asylum laws. Were it to pass, it might well solve large parts of the border problem — which would not serve him politically. He wrote on social media, “This Bill is a great gift to the Democrats.”The rest of the West is facing a similar challenge and is grappling with how to adjust immigration and asylum laws.
Persons: Fareed Zakaria, Fareed, Read, CNN —, Biden, Joe Biden, Donald Trump, Mike Johnson, Greg Abbott, Ron DeSantis, Elon Musk, Steve Scalise, , Trump, , Oklahoma Sen, James Lankford, , ’ ” Trump, David Frum, ” Frum, ” It’s Organizations: CNN, Fareed’s, Democratic Party, Republicans, Texas Gov, Florida Gov, Elon, Oklahoma, Customs Enforcement, Senate, White House, Democratic Locations: Texas, Florida, America
JERUSALEM (AP) — Saudi Arabia's foreign minister says the kingdom will not normalize relations with Israel or contribute to Gaza's reconstruction without a credible pathway to a Palestinian state. Prince Faisal bin Farhan's remarks in an interview with CNN broadcast late Sunday were some of the most direct yet from Saudi officials. It puts them at odds with Israeli Prime Minister Benjamin Netanyahu, who has rejected Palestinian statehood and described plans for open-ended military control over Gaza. In September, Netanyahu had said Israel was “at the cusp” of such a deal, which he said would transform the Middle East. Israel has only successfully rescued one hostage, while Hamas says several have been killed in Israeli airstrikes or during failed rescue operations.
Persons: Prince Faisal bin Farhan's, Benjamin Netanyahu, Netanyahu, Israel, “ CNN’s Fareed Zakaria, , ” Prince Faisal, , Prince Faisal, we’re, NETANYAHU, , ___ Shurafa Organizations: JERUSALEM, CNN, Israeli, Palestinian, West Bank, Hamas, Health Ministry Locations: Saudi, Israel, Palestinian, Gaza, United States, U.S, Saudi Arabia, Jerusalem, GAZA, U.N, Iran, Lebanon, Syria, Iraq, Yemen, Deir, israel
By Kanishka SinghWASHINGTON (Reuters) - Saudi Arabia's foreign minister said the kingdom was "very worried" that tensions in the Red Sea amid attacks by Yemen's Houthis and U.S. strikes on Houthi targets could spiral out of control and escalate the conflict in the region. The Saudi foreign minister said the kingdom believed in freedom of navigation and wanted tensions in the region to be de-escalated. The Houthis, who control most of Yemen, say their attacks are in solidarity with Palestinians under attack from Israel in Gaza. Since last week, the United States has been launching strikes on Houthi targets in Yemen, and this week returned the militia to a list of "terrorist" groups. President Joe Biden said on Thursday that air strikes would continue even as he acknowledged they may not be halting the Houthi attacks.
Persons: Kanishka Singh WASHINGTON, Yemen's Houthis, Prince Faisal bin Farhan, Fareed Zakaria, Joe Biden, Kanishka Singh, Daniel Wallis Organizations: CNN Locations: Saudi, Red, Iran, Asia, Europe, Gaza, Yemen, Israel, United States, Hamas, Palestinian, Washington
The rise of AI has elicited fear that the technology will eliminate millions of jobs around the world. The International Monetary Fund this week reported that about 40% of jobs around the world could be affected by the rise of AI. Gates doesn’t necessarily disagree with that notion, but he believes history shows with every new technology comes fear and then new opportunity. “I have more than enough money for my own consumption,” Gates said when Zakaria asked how philanthropic efforts are going. At a rate of $9 billion a year, Gates anticipates he’ll have given away all of his money in about 20 years.
Persons: New York CNN —, Bill Gates, Gates, ” Gates, CNN’s Fareed Zakaria, OpenAI’s, , Zakaria, hadn’t, “ I’m, I’ll, Melinda French Gates, he’s, Warren Buffett, CNN’s “ Fareed Zakaria Organizations: New, New York CNN, Monetary Fund, Microsoft, OpenAI, Gates, World Economic, CNN Locations: New York, Davos, Africa
Editor’s Note: Fareed Zakaria hosts “Fareed Zakaria GPS,” airing at 10 a.m. and 1 p.m. CNN —Henry Kissinger, who died this week at 100, may have been the most famous foreign policy practitioner in modern American history. And yet, admired or despised, he managed to hold the world’s attention long after his power waned. The Vietnam War was over. It particularly irked him that the liberal elites who had been enthusiastically in favor of the Vietnam War in 1967 became his most vicious critics within a few years.
Persons: Fareed Zakaria, “ Fareed Zakaria, CNN — Henry Kissinger, Kissinger, Martin Luther King, Jr, Robert Kennedy, Egypt, Fareed Zakaria Kissinger, Hitler, Goethe, Stalin, reread Spinoza, Henry Kissinger, Henry Kissinger’s Organizations: CNN, doer, The, Israel, Pakistan Locations: America, The United States, Vietnam, Soviet, Washington, Beijing, China, Israel, Taiwan, Moscow, United States, Bangladesh, Cambodia, Laos, Chile, Indonesia, Germany, optimists, European, Japan, Europe
CNN —Between the tragic, ongoing war in Gaza and the Biden-Xi summit, one crucial global crisis is in danger of being forgotten — the war in Ukraine. And this is a terrible time for it to be slipping from public consciousness because Ukraine faces trouble on two fronts. Despite the drones and Starlink connectivity, this is looking like the trench warfare during World War I, which ground on for four years. The second front that is equally worrying is in the West, where support for Ukraine is weakening. An international legal organization and process of adjudicating claims should be established and the funds handled through it.
Persons: Fareed Zakaria, “ Fareed Zakaria, General Valery Zaluzhny, Biden’s, Giorgia Meloni, , Donald Trump, Vladimir Putin, Trump, Laurence Tribe, Larry Summers, Robert Zoellick, Philip Zelikow, Summers, Zoellick Organizations: CNN, Biden, World Bank, Bank Locations: Gaza, Ukraine, Russia, Kherson, Italian, Moscow, Putin, Switzerland, Belgium, Kyiv, United States
“We need to see the following two things,” Mr. Netanyahu told NBC’s “Meet the Press.” “Gaza has to be demilitarized and Gaza has to be de-radicalized. He said that Israel must maintain security control there “for as long as necessary” and have the ability to enter Gaza at will to deal with perceived threats there. More than 11,000 people have been killed in Gaza since Oct. 7, according to Gazan health officials. “The massacre of Oct. 7 proved once and for all that in every place that Israel does not have security control, terrorism entrenches itself,” Mr. Netanyahu said on Saturday. Mr. Netanyahu, a conservative and Israel’s longest-serving prime minister, has been prosecuting the war amid plummeting approval ratings.
Persons: Benjamin Netanyahu, Israel, Mr, Netanyahu, NBC’s “, , , ” Mr, Netanyahu’s, Biden, Antony J, Blinken, António Guterres, CNN’s “ Fareed Zakaria, Israel’s, Mahmoud Abbas, forthrightly, Israel —, Abbas, ” Nabil Abu Rudeineh, Abu Rudeineh, Wafa Organizations: Israeli Army, Palestinian, Press, Palestinian Authority, Israeli, West Bank, United Nations, , West Locations: Gaza, Israel, Palestinian, Qatar, Samaria, , West Bank, East Jerusalem
The chief Israeli military spokesperson, Rear Admiral Daniel Hagari, described Hezbollah as "the defender of Hamas-ISIS", in reference to the Islamist Palestinian faction whose cross-border rampage against Israel on Oct. 7 sparked a devastating Gaza war. Hezbollah leader Hassan Nasrallah on Saturday described the Israel front as "active". A rocket set off sirens near the Israeli port city of Haifa, 27 km (17 miles) from the Lebanese border, but caused no casualties. Smoke rises as seen from Israel-Lebanon border in northern Israel, November 12, 2023. Residents of villages and towns on the Lebanese border have evacuated southward even as Gaza border communities hit by Hamas emptied, making for some 250,000 internally displaced Israelis.
Persons: Daniel Hagari, Hassan Nasrallah, Israel, Evelyn Hockstein, Rights Israel, Hagari, Antonio Guterres, Fareed Zakaria, Guterres, Maayan Lubell, Crispian Balmer, Giles Elgood Organizations: ISIS, Palestinian, Saturday, Sunday, Lebanese, REUTERS, Rights, IDF, Thomson Locations: Israel, Gaza, Haifa, Lebanese, Lebanon, Beirut, Iran
“We need to see the following two things,” Mr. Netanyahu told NBC’s “Meet the Press.” “Gaza has to be demilitarized and Gaza has to be de-radicalized. His remarks appeared to be somewhat at odds with the Biden administration, which last week made it clear that there should be no Israeli “re-occupation” of Gaza. More than 11,000 people have been killed in Gaza since Oct. 7, according to Gazan health officials. “The massacre of Oct. 7 proved once and for all that in every place that Israel does not have security control, terrorism entrenches itself,” Mr. Netanyahu said on Saturday. Mr. Netanyahu, a conservative and Israel’s longest-serving prime minister, has been prosecuting the war amid plummeting approval ratings.
Persons: Benjamin Netanyahu, Israel, Mr, Netanyahu, NBC’s “, , , ” Mr, Netanyahu’s, Biden, Antony J, Blinken, António Guterres, CNN’s “ Fareed Zakaria, Israel’s, Mahmoud Abbas, forthrightly, Israel —, Abbas, ” Nabil Abu Rudeineh, Abu Rudeineh, Wafa Organizations: Israeli Army, Palestinian, Press, Palestinian Authority, Israeli, West Bank, United Nations, , West Locations: Gaza, Israel, Palestinian, Qatar, Samaria, , West Bank, East Jerusalem
“I can assure you that not one time have I ever recommended to attack Iran,” Milley said. In his book, “The Chief’s Chief,” Meadows references the meeting and the Iran document, claiming Milley urged Trump to attack Iran more than once during Trump’s presidency, but that Trump would not do so. “It contained the general’s own plan to attack Iran, deploying massive numbers of troops, something he urged President Trump to do more than once during his presidency. President Trump denied those requests every time.”Milley told Zakaria he did not know what Meadows had written but reiterated he had never recommended an attack on Iran. “I can tell you with certainty that this chairman never recommended a wholesale attack on Iran,” Milley said.
Persons: Mark Milley, “ Fareed Zakaria, CNN’s Fareed Zakaria, Trump, Donald Trump, Mark Meadows, ” Milley, Milley, Jack Smith’s, Meadows, ” Trump, Zakaria, I’ve, that’s, , ” Meadows Organizations: CNN, Joint Chiefs, Staff, White, Army, Milley, Trump, Yorker Locations: Iran, , Bedminster , New Jersey, ” Meadows
New York CNN —The artificial intelligence boom continues to fuel a blockbuster year for chipmaker Nvidia. Nvidia expects revenue to be even higher in the current quarter: forecasting revenue of $16 billion for its fiscal third quarter. Nvidia’s stock has climbed by just over 220% since the start of this year amid a surge in the popularity of and demand for artificial intelligence technology. The American chipmaker produces processors that power generative AI, technology that can create text, images and other media — and which forms the foundation of buzzy new services such as ChatGPT. Companies worldwide are transitioning from general-purpose to accelerated computing and generative AI,” Nvidia CEO Jensen Huang said in a statement, adding that the company is working with “Leading enterprise IT system and software providers … to bring NVIDIA AI to every industry.”“The race is on to adopt generative AI,” he said.
Persons: Zakaria, , Colette Kress, Jensen Huang, Huang, Jacob Bourne, , ” Kress Organizations: CNN, Intelligence, New, New York CNN, Nvidia, Santa, Wall, Companies, NVIDIA, Locations: New York, Santa Clara , California
The White House announced Friday that the president had approved the transfer of cluster munitions to Ukraine, the latest instance where the US has provided Kyiv with weapons it initially resisted sending into the war. The cluster munitions that the US will send to Ukraine will be compatible with US-provided 155mm howitzers, a key piece of artillery that has allowed Ukraine to win back territory over the last year. Tom Brenner for CNNBiden told Zakaria that the cluster munitions were being sent as a “transition period” until the US is able to produce more 155mm artillery. But it was not an easy decision,” Biden said. And I think they needed them.”The decision to provide cluster munitions comes at a critical point in the war, as the Ukrainians have struggled to make major gains in their counteroffensive against Russia.
Persons: Joe Biden, “ Fareed Zakaria, CNN’s Fareed Zakaria, ” Biden, CNN's Fareed Zakaria, Tom Brenner, Zakaria, “ They’re, “ We’re, Biden, Ukraine – Organizations: CNN, White, US, CNN Biden, Defense Department, Cluster Munitions, Russia, NATO, Ukraine Locations: Ukraine, Russia, Washington, France, Germany, Europe, Lithuania
US can't yet compete with China on EVs, Ford chairman tells CNN
  + stars: | 2023-06-18 | by ( ) www.reuters.com   time to read: +1 min
June 18 (Reuters) - Ford Motor (F.N) Executive Chairman Bill Ford said the United States was not ready yet to compete with China in the production of electric vehicles. And now they're exporting them," Ford told CNN's 'Fareed Zakaria GPS' Sunday program. "They're not here but they'll come here we think, at some point, we need to be ready, and we're getting ready," Ford said. Bill Ford, who is the great-grandson of company founder Henry Ford, said in the program that the Michigan battery plant is a chance for Ford engineers to learn the technology and then use it themselves. Ford CEO Jim Farley said in May that Chinese electric vehicle makers are its main rivals in the sector, and that Ford needs distinctive branding or lower costs to beat Chinese automakers.
Persons: Bill Ford, Ford, CNN's, Fareed Zakaria, we're, Marco Rubio, Biden, Henry Ford, Jim Farley, Rishabh Jaiswal, Bharat Govind Gautam, Diane Craft Organizations: Ford, Toyota, Thomson Locations: United States, China, Michigan, Bengaluru
WASHINGTON, June 11 (Reuters) - The World Bank must use "informed risk-taking" to encourage private investors to get more engaged in helping developing countries deal with climate change and leapfrog fossil-fuel energy sources, its new president Ajay Banga said on Sunday. Private sector capital was critical since funds from governments, philanthrophy, the World Bank and other multilateral development banks (MDBs) would never suffice to help poor countries adapt to and mitigate climate change, said Banga, a former Mastercard CEO who took office on June 2. Private companies were bound to deliver returns for shareholders and could not take on the risks involved, but the bank could help, he said. The Indian-born executive was nominated by the U.S. for the job precisely because of his previous work in the private sector, and he has pledged to identify barriers for greater investment and find ways to maximize the bank's impact. Banga told CNN he would also work closely with other multilateral lenders and development organizations, noting that he would be joined in his visits this week by Inter-American Development Bank President Ilan Golfajn.
Persons: Ajay Banga, Banga, CNN's, Fareed Zakaria, Ilan Golfajn, Andrea Shalal, Mark Porter, Jan Harvey Organizations: Fareed Zakaria GPS, World Bank, Mastercard, U.S, CNN, Inter, American Development Bank, Thomson Locations: Banga, Peru, Jamaica
WASHINGTON, June 4 (Reuters) - A Chinese warship came within 150 yards (137 meters) of a U.S. destroyer in the Taiwan Strait in "an unsafe manner," U.S. military officials said, as China blamed the United States for "deliberately provoking risk" in the region. China's military rebuked the United States and Canada for "deliberately provoking risk" after the countries' navies staged a rare joint sailing through the sensitive Taiwan Strait. The U.S. Indo-Pacific Command said the Chung-Hoon and Canada's Montreal were conducting a "routine" transit of the strait when the Chinese ship cut in front of the American vessel. The maritime encounter was the latest close call between the Chinese and U.S. military. Chinese Defense Minister Li Shangfu told Asia's top security summit on Sunday that conflict with the United States would be an "unbearable disaster" but that his country sought dialogue over confrontation.
Persons: Chung, Mao Zedong's, Taiwan's, Joe Biden, Hoon, Liu Pengyu, Jake Sullivan, Fareed Zakaria, Li Shangfu, Ted Hesson, Grant McCool Organizations: Pacific Command, Taiwan, U.S, U.S . Navy, Royal Canadian Navy, Global, U.S ., House, CNN, Chinese Defense, Thomson Locations: U.S, Taiwan, China, United States, People's Republic of China, Republic of China, Canada, The U.S, Republic, Taiwan Strait, Montreal, Washington, Chinese, South
Obviously, the line is not perfect, but I think that’s a very sensible line. And I don’t think that’s all about absorption capability. But I don’t think it’s fair to say that the Russians have done everything they can. fareed zakaria[LAUGHS] And by the way, I think that’s some key to understanding the alliance is a personal one. I think India, Israel, and Poland — usually, in the 70 percent-plus say they like — have a favorable view of America.
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WASHINGTON, April 15 (Reuters) - U.S. Treasury Secretary Janet Yellen said banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. "Banks are likely to become somewhat more cautious in this environment," Yellen said in the interview, which is scheduled to air on Sunday. But Yellen said she was not yet seeing anything "dramatic enough or significant enough" in this area to alter her economic outlook. Some Fed officials have said the U.S. central bank should adopt a more cautious footing as they expect banks to restrict lending in the months ahead. Asked whether sanctions could erode the dollar's role as the world's reserve currency, Yellen acknowledged potential risks.
US banks likely to pull back credit, Yellen tells CNN
  + stars: | 2023-04-15 | by ( ) www.reuters.com   time to read: +1 min
WASHINGTON, April 15 (Reuters) - U.S. Treasury Secretary Janet Yellen said banks are likely to tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve rate hikes, according to a CNN interview transcript released on Saturday. "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 prior to that episode, and there may be some more to come." She said that would lead to a restriction in credit in the economy that "could be a substitute for further interest rate hikes that the Fed needs to make." Reporting by David Lawder and Daniel Burns; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.
U.S. Treasury Secretary Janet Yellen said banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. "Banks are likely to become somewhat more cautious in this environment," Yellen said in the interview, which is scheduled to air on Sunday. She said that would lead to a restriction in credit in the economy that "could be a substitute for further interest rate hikes that the Fed needs to make." But Yellen said she was not yet seeing anything "dramatic enough or significant enough" in this area to alter her economic outlook. Some Fed officials have said the U.S. central bank should adopt a more cautious footing as they expect banks to restrict lending in the months ahead.
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