Fed Chair Jerome Powell has said he does not see high corporate debt as posing the same sort of systemic threat that the subprime mortgage market did. But he has warned that further increases could be problematic.
Demand for most household loans rose, the survey showed, including for residential mortgages, a turnaround from what had been a period of weakening demand for much of the last two years as the Fed steadily raised interest rates.The Fed signalled in January that its rate-hiking cycle was on pause, and last month it cut interest rates for the first time since December 2008.
Longer-term, standards for commercial and real estate lending, as well as subprime credit card and auto loans, has tightened compared with what has been the norm from 2005 to now, the survey showed.