- 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 began its rate-hike campaign against high inflation in March of 2022, taking the policy rate from near zero then to 5.25%-5.50% as of July of this year. "We don't have a lot of data to really hang our hat on at this point," said BMO's Scott Anderson. But the impact of tighter credit is coming, he said, and "we're pretty confident we'll see a slowdown."Fed policymakers 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% - will also cool the economy.Overall U.S.
Banks responding to the Dallas Fed survey reported increased delinquency for all kinds of borrowers, but particularly for consumer loans. That could be a particularly telling turn of events, because other Fed data shows that even as U.S. banks have tightened credit card standards, credit card borrowing did not slow in the second quarter.
Warren Buffett is set to indirectly bet on a tiny nation that's the world's fastest-growing economy and an emerging oil superpower
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