Fed's Duke Sees More Weakness in Consumer Borrowing

You
GMT
London
New York
Tokyo

Published: Mon, 30 Mar 2009 17:56:31 +0200

Fed's Duke Sees More Weakness in Consumer Borrowing

(CEP News) - Consumer credit has been trending down and shows signs it will slow further in the near term, Federal Reserve Governor Elizabeth Duke said on Monday.

"Looking back over the past 50 years, non-mortgage consumer credit typically weakens throughout a recession as labor markets deteriorate and often turns down even after the recession ends," she said in a speech delivered at the University of North Carolina, in Charlotte.

"Thus, history suggests that consumer credit growth will likely slow further in the near term; in addition, many banks have tightened terms and standards for non-mortgage consumer loans," she continued.

She did, however, say originations of consumer loans could pick up as the Fed's Term Asset-Backed Securities Loan Facility program "gains traction."

She also noted that the Federal Reserve is committed to employing "all available tools" in order to promote an economic recovery and maintain price stability.

By Stephen Huebl, shuebl@economicnews.ca, edited by Sarah Sussman, ssussman@economicnews.ca

CEP Newswires - CEP News © 2009. All Rights Reserved. www.economicnews.ca

The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News.

A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer.

Search

Actualité du forex

Forex News

English
Français

Forex News

Actualité du forex