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U.S. consumers are concerned about access to credit amid persistently higher interest rates and stricter banking standards, according to a New York Federal Reserve survey released Monday.
The number of respondents saying it is more difficult to get loans, credit cards and mortgages now than a year ago rose to almost 60%, the highest level in a data series dating back to June 2013. The results were part of the New York survey . Fed survey of consumer expectations for August.
Fears about access to credit have been steadily rising since early 2022, around the same time the Fed began raising rates. Since March last year, the central bank has raised its key interest rate eleven times, to a total of 5.25 percentage points, in an effort to curb inflation.
While the Fed is concerned about higher prices, the inflation outlook was mixed.
One-year and five-year inflation expectations rose just 0.1 percentage point this month, reaching 3.6% and 3% respectively. The three-year outlook fell 0.1 point to 2.8%. The Fed targets an inflation rate of 2%.
However, the outlook for commodity inflation was largely different.
The survey found that respondents’ expectations for gas prices increased by 0.4 percentage points to 4.9%, by 0.8 percentage points for medical care to 9.2%, by 0.1 percentage points for food to 5 .3%, and by 0.2 percentage points each for university education and rent, to 8.2% and 9.2%. %, respectively.
Concerns about employment are also increasing: the survey shows that the average expectation of losing your job in the coming year has increased by 2 percentage points to 13.8%, the highest since April 2021. This is accompanied by an unemployment rate of only 3.8%, or 0.1%. percentage point above the level of a year ago.