Lending standards for both households and businesses have become less accommodative, borrowing conditions are tight for low-rated households and businesses, the US Federal Reserve said in its latest Monetary Policy Report.
Additional takeaways
“Deterioration in labor market conditions since February has been sudden, severe, and widespread.”
“Financial-sector vulnerabilities are expected to be significant in the near term.”
“Strains on household and business balance sheets from the economic and financial shocks since march will likely create persistent fragilities.”
“Financial institutions may experience strains as a result.”
“Widespread failure of small businesses would adversely alter the economic landscape and potentially slow the recovery and future labor productivity growth.”
“Data received since the survey week for payroll employment in may suggest that job gains have continued.”
“Weekly employment data from ADP indicate that rehiring has continued and that payroll employment will likely move up again in June.”
“Distinction between being unemployed and out of the labor force likely has become especially blurred.”
“In the second quarter, real GDP appears to be plummeting at a breathtaking pace.”
“There are signs that manufacturing activity moved up in May.”
Market reaction
The US Dollar Index edged higher in the last hour and was last seen gaining 0.35% on the day at 97.15.
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