Fed Says Loans Now Harder To Attain
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The Federal Reserve said it became tougher for American companies and consumers to get loans in the past three months, particularly to buy real estate.
Most lenders anticipate more delinquencies and losses this year, assuming “economic activity progresses in line with consensus forecasts,” according to the central bank’s quarterly survey of senior loan officers released yesterday. The survey, conducted last month through January 17, was available to Fed policy makers last week and may help explain the central bank’s fastest easing of monetary policy since 1990. Chairman Bernanke and his colleagues lowered their benchmark rate by 1.25 percentage points last month, aiming to revive lending and spending, averting a recession.
