Aug 3 (Reuters) – Respondents to a Federal Reserve banking survey reported “basically unchanged” lending standards for commercial and industrial loans during roughly the second quarter, with stronger demand for that type of loan coming from large and middle market firms.
“For loans to households, banks reported mixed changes in lending standards and weaker demand for residential real estate, the Fed said in its latest quarterly Senior Loan Officer Survey, this time for July.
The update on lending standards and credit demand comes as businesses have been dealing with persistently strong levels of inflation in an economy where growth remains solid and the job market has been stable.
The Fed has been wrestling with whether it might need to raise rates and increase the cost of short-term borrowing to bring inflation back down to the 2% target.
Last week, the central bank held its interest rate target range steady at between 3.5% and 3.75% as Chairman Kevin Warsh declined to give guidance.
(Reporting by Michael S. DerbyEditing by Nick Zieminski)
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