Trade Woes May Crimp Rising Consumer Loan Demand, Analysts Warn
- Fed survey showed people want mortgages, auto and card loans
- But the survey ended in July, before latest trade turmoil
Photographer: Ron Antonelli/Bloomberg
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The Federal Reserve’s July Senior Loan Officer Opinion Survey showed more demand for consumer credit and mortgages, analysts said. That’s a good sign, JPMorgan said, but the survey didn’t account for recent concerns about an escalating trade war, which may hit borrowing.
The KBW Bank Index has fallen 7% so far in August, as 10-year yields tumbled on growth and trade fears. The stock gauge reached its lowest levels since early June. Top decliners over the past four sessions include Comerica Inc., SVB Financial Group, KeyCorp and Huntington Bancshares Inc.