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☆ Yellen says U.S. banks may tighten lending and negate need for more Fed rate hikes
▼ + stars: | 2023-04-15 | by ( ) www.cnbc.com time to read: +2 min

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.

☆ Yellen to CNN: Despite banking crisis, soft landing still possible
▼ + stars: | 2023-04-14 | by ( Alicia Wallace | ) edition.cnn.com time to read: +3 min

Minneapolis CNN —Last month’s upheaval within the banking sector hasn’t pushed America off course from achieving a soft landing, US Treasury Secretary Janet Yellen told CNN’s Fareed Zakaria in an exclusive interview Friday. “I do think there’s a path to bring down inflation while maintaining what I think all of us would regard is a strong labor market,” Yellen said. “We had big shifts in the way people live and low interest rates, and housing prices rose a lot. In the interview with Zakaria, Yellen said Russia should pay for the damage caused in Ukraine and talks are ongoing as to potential mechanisms to make that happen. “That’s a responsibility that I think the global community expects Russia to bear,” she said.

☆ Lloyd Blankfein on safety of money: 'Sort of yes'
▼ + stars: | 2023-03-19 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +4 min

Lloyd Blankfein, the former CEO of Goldman Sachs said the answer is not black and white on “Fareed Zakaria GPS” Sunday. Instead, the central bank along with the Federal Deposit Insurance Corporation and the Treasury Department, have the power to guarantee deposits bank by bank if they find a systemic emergency. “Do we want to make it the duty of depositors to do that kind of forensic accounting analysis on banks?” Blankfein said. If it’s certified, we get on them.”The difference between 2008 and now is the difference in assets, Blankfein said. If the current model of banking stays in place, most Americans will think their money is only safe in too-big-to-fail banks, Blankfein said.

☆ Larry Summers: Russia should rebuild Ukraine's economy
▼ + stars: | 2023-02-26 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +2 min

Trade with Russia’s neighbors “has ramped up considerably in the last year, which suggests that they’re serving as a way station for goods to get into Russia,” Summers said. The way to win the economic aspect of this, Summers said, is to support Ukraine’s economy, which has left bombed cities and millions destitute. Russian assets should be the ultimate source to pay the bill to rebuild Ukraine, Summers said. In addition to Ukraine, Russian assets should be used to support “the developing world that have paid and suffered enormously from higher food and energy prices because of Russian aggression,” Summers asserted. It could set a “healthy precedent” for countries engaged in cross-border aggression like Russia to lose state assets, Summers added.

☆ Larry Summers says he's encouraged the Fed can pull off a soft landing, but not to get hopes up
▼ + stars: | 2023-02-05 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +3 min

New York CNN —After a shocking jobs report, Larry Summers, treasury secretary under Bill Clinton, said he is more encouraged the Fed can pull off a soft landing, but cautioned it is a “big mistake” to think the economy is “out of the woods” on Fareed Zakaria GPS Sunday. Friday’s job’s report saw an astonishing 517,000 jobs added in January and unemployment tick down to 3.4%, the lowest since 1969. Economists had predicted 185,000 jobs, expecting a slower jobs market after almost a year of aggressive rate hikes from the Federal Reserve. It brings up the question: Can the United States pull off a soft landing, bringing down inflation without triggering a recession? “That some in the Republican Party may bow to the demands of the extremists does not mean that the President of the United States should do that.”

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