Treasury Secretary Janet Yellen said US lenders may pull back on credit in the wake of recent bank failures — enough to do some of the Federal Reserve’s work for It was not enough for her to change significantly her outlook on economics.

“Banks are likely to become somewhat more cautious in this environment,” Yellen said in an interview on CNN’s Fareed Zakaria GPS The show is scheduled to be broadcast on Sunday. “That does tend to lead to somewhat greater restriction in credit that could be a substitute for further interest-rate hikes that the Fed needs to make.”

She remains optimistic that the US will be able to overcome its problems could You can avoid a significant increase in unemployment and a possible recession when the inflation drops and as soon as the economy begins to cool.

“I’m not seeing anything at this time that is dramatic enough or significant enough, in my view, to significantly change the outlook,” She said according to the CNN transcript. “The outlook remains one for moderate growth and continued strong labor market with inflation coming down.”

She was adamant that her comments were not sexist. more Nuance in comparison to her April 11, 2011 remarks when she claimed she had seen no evidence Credit contractions in the US, even after the Fed Just a few days earlier, data was released showing that bank lending has dropped significantly in the final two weeks of March.

Yellen answered the question of whether or not the US supported the use of frozen Russian assets for the reconstruction in Ukraine. The country’s president, Volodymyr Zelenskiy, spoke this week via videoconference to a gathering of global finance leaders in Washington and urged them Seize Russian assets

Treasury chief agrees that Russia should be The government was forced to pay but refused to endorse the seizure.

“Russia should pay for the damage that it has done to Ukraine,” She said “But, you know, there are legal constraints on what we can do with frozen Russian assets, and we’re discussing with our partners what might lie in the future.”