N.Y. Fed Sees Uptick in Credit Rejection Rates

The FDIC and the Office of the Comptroller of the Currency rescinded guidance on leveraged lending issued more than a decade ago, saying it was too restrictive.

Consumer credit increased at a seasonally adjusted annual rate of 2.2% in October. Revolving credit, largely a reflection of credit card debt, increased at an annual rate of 4.9%.

Volatility measures began rising in late October after Fed Chair Powell stated that a rate cut in December was not a foregone conclusion.

While the outlook for credit conditions over the next six months has improved, bank economists expect continued softening in credit quality and availability given the prospect of persistent labor market headwinds, according to ABA’s latest Credit Conditions Index.

Personal income increased 0.4%, or $94.5 billion, in September, the Commerce Department said. The personal savings rate was 4.7%.

The University of Michigan Consumer Sentiment Index rose 4.5% in December compared to the month prior, landing at 53.3, according to preliminary results for the month.