Rates on the open market that determine borrowing costs for businesses and consumers have kept climbing and now look poised to finally slow what has been a surprisingly strong U.S. economy
U.S. Federal Reserve officials will likely leave their policy rate on hold at next week’s meeting thanks in large part to a new dynamic unfolding before them: Other forces are finally doing the work for them.
The Fed’s latest survey on banking conditions won’t be published until the Monday after next week’s meeting, but past practice suggests findings from its October Senior Loan Officer Opinion Survey, or SLOOS, are in policy-makers’ hands this week. Businesses have become particularly uninterested in borrowing, banks reported in the Fed’s July senior loan officers opinion survey.
Fed policy-makers seem to be largely on that same page, with several noting the rise in the yield on the benchmark 10-year Treasury note – up about a full percentage point since the Fed’s last rate hike, to 4.89 per cent – will also cool the economy. And a year-long decline in loan demand accelerated in the second half of September, according to a twice-quarterly Dallas Fed survey of Texas banking conditions that closely tracks the Fed’s national survey.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Federal Reserve Board ends currency trading-tied enforcement action on CitigroupThe lender had pleaded guilty to violation of U.S. antitrust laws over manipulation of foreign exchange rates. 'Citigroup has adopted a firm-wide risk...
Read more »
Federal Reserve Board ends enforcement action with CitigroupMarket News
Read more »
Tighter credit, lending conditions build case for Fed policy holdU.S. Federal Reserve officials will likely leave their policy rate on hold at next week's meeting thanks in large part to a new dynamic unfolding before them...
Read more »
Fed Hikes Still in Play on Strong Economy, Pimco’s Clarida WarnsThe Federal Reserve may have to raise interest rates further to fight stubborn inflation amid a resilient US economy, according to Pacific Investment Management Co.’s Richard Clarida.
Read more »
Pittsburgh Penguins place Nedeljkovic on injured reserve and re-assign ZohornaNedeljkovic goes on the IR after getting injured vs Dallas.
Read more »