Podcast: Unpacking the Post-COVID Economic Recovery

The ABA Office of the Chief Economist believes that this month’s inflation reading marks continued normalization in price growth, but overall inflation remains above the Federal Reserve’s target.

Sharp shifts in deposit mix and funding composition are giving way to more familiar patterns across the banking industry.

The NFIB Small Business Optimism Index increased 2.4 points in July to 99.8, rising above its 52-year average of 98. The Uncertainty Index rose two points from June to 91.

Total household debt decreased $13 billion, or 0.1%, to $18.8 trillion in the second quarter of the year, the Federal Reserve Bank of New York said in its Quarterly Report on Household Debt and Credit.

ABA economists views the continued sluggish home sales as a headwind to mortgage demand. Slower turnover in the housing market may also dampen demand for residential construction loans and other forms of consumer credit associated with real estate transactions.

Consumer credit increased at a seasonally adjusted annual rate of 2.6% in the second quarter, with revolving and nonrevolving credit increasing 3.9% and 2.1%.