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Credit Conditions

All articles tagged with #credit conditions

business2 years ago•2 min saved

US Small Business Optimism Plummets to 10-Year Low Amid Economic Uncertainty

Small business sentiment fell in April to the lowest level in 10 years, with fears over the near-term economic outlook, persistent worker shortages, and chronic inflation. Small businesses are also pessimistic about the future, with the share of owners expecting better business conditions over the next six months falling to a net negative 49%. Worker quality continued to pose the biggest threat to small businesses in April, as historically low unemployment and rapid wage increases made it harder for the owners of these firms to compete with big companies and hire employees. However, businesses reported little difficulty in accessing credit.

via Fox Business|

#business #credit-conditions #economic-outlook

economy2 years ago•4 min saved

Inflation Expectations and Economic Concerns Impact Markets.

The Federal Reserve Bank of New York's April 2023 Survey of Consumer Expectations shows that short-term inflation expectations declined, while medium- and longer-term expectations increased slightly. Labor market expectations deteriorated slightly, with unemployment expectations and perceived job loss risk increasing and job finding expectations decreasing. Perceptions and expectations of credit conditions were mixed. Median expected growth in household income decreased, while median household spending growth expectations also decreased. The survey is a nationally representative, internet-based survey of a rotating panel of approximately 1,300 household heads.

via Federal Reserve Bank of New York|

#credit-conditions #economy #household-finance

finance2 years ago•3 min saved

Gold price volatility continues amid economic uncertainty.

Gold prices are expected to remain at historically high levels in the coming months due to concerns about credit conditions and the debt ceiling debate. The US April employment report came in better than expected, with the unemployment rate falling to a 53-year low of 3.4% and the economy adding 253,000 jobs last month. However, the gold market won't face any serious obstacles until the debt ceiling issue and the banking sector turmoil are resolved. The last time the debt ceiling really shook markets was in 2011, and there are some parallels to be drawn between then and now.

via Kitco NEWS|

#banking-sector #credit-conditions #debt-ceiling

economy2 years ago•2 min saved

Fed's Williams: Inflation high, labor market cooling, and support for interest-rate increase.

Federal Reserve Bank of New York President John Williams said that inflation is still at problematic levels and the U.S. central bank will act to lower it, in comments that noted recent stress in the banking sector will likely weigh on economic activity. Williams said that the banking sector stress that started last month and has resulted in extensive Fed emergency lending to banks seems to be cooling off. He also said that it would be likely this borrowing declines as banking sector conditions further stabilize.

via Reuters|

#banking-sector #credit-conditions #economy

business2 years ago•0 min saved

Small US Businesses Struggle for Credit Amid SVB Collapse Fallout

US small businesses are facing the worst credit conditions in a decade, with a net 9% of firms reporting that loans are harder to get compared to three months earlier, according to a survey by the National Federation of Independent Business. The same share expects tougher credit conditions in the next three months, matching the highest level in a decade, following multiple bank failures that have led to a further tightening of credit conditions.

via Bloomberg|

#bank-failures #business #credit-conditions

finance2 years ago•3 min saved

US Bank Lending and Deposits Continue to Decline Amid Economic Uncertainty

US bank lending contracted by the most on record in the last two weeks of March, indicating a tightening of credit conditions in the wake of several high-profile bank collapses that risks damaging the economy. Commercial bank lending dropped nearly $105 billion in the two weeks ended March 29, the most in Federal Reserve data back to 1973. The recent bank failures have complicated the central bank’s efforts to reduce inflation without sending the economy into a recession.

via Yahoo Finance|

#bank-collapses #credit-conditions #federal-reserve

finance2 years ago•0 min saved

The Impact of SVB Collapse on Banks' Junk Debt Unloading Efforts.

Wall Street firms, including Bank of America, Barclays, and Morgan Stanley, are struggling to sell off $25 billion to $30 billion of "hung debt" tied to leveraged buyouts that banks agreed to finance before worsening credit conditions last year sapped investor appetite for the paper. The recent turmoil in the banking industry has made the already-difficult task of selling off tens of billions of risky buyout debt even harder for these firms.

via The Wall Street Journal|

#banking #buyout-debt #credit-conditions

finance2 years ago•1 min saved

Fed's Williams Addresses Uncertainty in Bank Crisis Impacts and Policy Outlook.

New York Fed President John Williams said that the magnitude and duration of the impact of the recent bank crisis on credit conditions is still uncertain. He added that the Fed's policy decisions will be driven by incoming economic data, particularly on inflation and the job market. Williams expects inflation to decline to around 3.25% this year, before moving closer to the Fed’s goal in the next two years. He also expects the economy to grow modestly this year and for growth to pick up somewhat next year, though he expects to see the unemployment rate rise to 4.5% over the next year, up from 3.6% as of February.

via Yahoo Finance|

#bank-crisis #credit-conditions #economic-data

finance2 years ago•0 min saved

Fed's Warning on Credit and Rate Hike Sparks Investor Concerns.

The Federal Reserve's decision to raise interest rates was seen as dovish by the markets, but Chairman Jerome Powell's warning on credit conditions spooked investors. Powell stated that the central bank is monitoring the risks posed by highly-leveraged companies and that the Fed is prepared to act if necessary. The warning caused stocks to fall and bond yields to drop.

via CNBC|

#credit-conditions #federal-reserve #finance