Title: U.S. Treasury: No Need to Raise Interest Rates

U.S. Treasury Secretary Janet Yellen announced that banks are likely to become more cautious and tighten lending restrictions following the recent collapse of two banks, which may eliminate the need for the Federal Reserve to continue raising interest rates. Yellen stated, "Monetary policy actions aimed at stopping the systemic threat posed by the collapse of Silicon Valley Bank and Signature Bank last month have stabilized outflow deposit flows," according to CNN. She added, "We have already seen some tightening in lending standards in the banking system before the collapse of the two banks, and there may be more in the future." Yellen affirmed that U.S.-led sanctions and export restrictions on Russia are depriving Moscow of the materials needed for its war in Ukraine, and that the $60 price cap on Russian oil imposed by Western countries is turning Moscow's expected budget surpluses into deficits. She stated that sanctions and export restrictions have forced Russia to seek military equipment and supplies from Iran and North Korea, and that the U.S. is taking steps to limit sanctions evasion. The sanctions create a desire among China, Russia, and Iran to find an alternative to the dollar, but this is "not easy" to achieve due to its unique characteristics as it is backed by the safest and most liquid assets in the world, namely U.S. Treasury bonds.