Fed survey finds general ease in first-quarter credit demand

From Yahoo Finance: 2025-05-12 14:25:00

Top U.S. bank lending officers reported weaker demand for credit from businesses and consumers in the first quarter, per a Federal Reserve report. Banks tightened lending standards for business loans, with a net percentage reporting stricter standards. Demand for loans was weakest since last year for large firms, and weakest in a year for small firms. Tighter standards were attributed to a challenging economic environment. President Trump’s trade agenda has created uncertainty, affecting lending outlook. However, a temporary trade deal with China has sparked optimism and traders have reduced bets on a Fed rate cut until September.



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