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, Reuters reported. Yellen said in a "Fareed Zakaria GPS" interview that policy actions to stem the systemic threat caused by last month's failures of Silicon Valley Bank and Signature Bank had caused deposit outflows to stabilize, "and things have been calm," according to a CNN transcript released on Saturday. "Banks are likely to become somewhat more cautious in this environment," Yellen said in the interview, which is 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." But Yellen said she was not yet seeing anything "dramatic enough or significant enough" in this area to alter her economic outlook. "So, I think the outlook remains one for moderate growth and (a) continued strong labor market with inflation coming down," she said.