Banks have tightened lending standards as the Fed, beginning in March 2022, raised interest rates 11 times — the most aggressive pace in four decades.
Policymakers, aiming to curb inflation to the central bank’s 2% target, increased the federal funds rate July 26 by a quarter-percentage point to a range between 5.25% and 5.5%, the highest level in 22 years.
Fed Chair Jerome Powell, during a press conference, said the loan officers survey is “broadly consistent with what you’d expect.”
