WASHINGTON, D.C.: The Federal Reserve (Fed) is getting some unwanted help in its drive to slow the US economy and defeat the worst bout of inflation in four decades: a cutback in bank lending.

The upheaval in the financial system following the collapse of two major US banks is raising the likelihood that lending standards will become sharply more restrictive. Fewer loans would mean less spending by consumers and businesses. That, in turn, would make it harder for companies to raise prices, thereby reducing inflationary pressures.