The Federal Reserve revealed that commercial and industrial loans, which play a crucial role in driving the economy, experienced a significant decrease of $6.2 billion, bringing the total to $2.75 trillion for the week ending August 9. This downward trend in lending has persisted for the past four months, starting from the collapse of Silicon Valley Bank in mid-March.
In the latest week, lending by large banks witnessed a decline of $6.3 billion, reaching $1.54 trillion. By comparison, it stood at $1.55 trillion in mid-March. Conversely, small banks experienced an increase in lending by $1.6 billion, totaling $716.3 billion. This represents a recovery from the $743 billion recorded in mid-March.
Federal Reserve officials expressed worry about the potential impact of tighter credit conditions on households and businesses since the Silicon Valley Bank collapse. Although the extent of these effects remains uncertain, the Fed is concerned that banks might reduce lending and tighten standards to such an extent that it triggers a credit crunch in the broader economy.
The S&P 500 Index (SPX) endured its third consecutive weekly loss as bond yields climbed higher due to the Federal Reserve's persisting concerns over inflation. The 10-year yield (BX:TMUBMUSD10Y) continued its upward trajectory for the fifth consecutive week, reaching 4.251% at the end of the week.
Steelcase, a leading furniture company, has announced higher net income for the second quarter but experienced a slight decline in revenue. Despite this, the co...
Abingdon Health, a UK diagnostics company, narrows pretax loss and increases revenue due to commercial momentum and cost reduction. The company has a strong fin...
Used cars have become more expensive and less available due to the pandemic, with prices increasing and mileage rising. The demand for personal vehicles and dis...