Podcast: How the ‘apolitical’ Fed moves during presidential elections

The University of Michigan Consumer Sentiment Index increased 11.5% in July compared to the month prior, landing at 55.2, according to final results for the month. Sentiment was down 10.5% year over year.

The rapid growth in hedge fund Treasury holdings reflects a structural shift in the U.S. Treasury market, with leveraged investors playing a larger role in financing government debt while some foreign governments have reduced holdings.

The rate for a 30-year fixed-rate mortgage was 6.66% this week. The rate for a 15-year fixed-rate mortgage was 6.04%.

ABA's economic team believes there are risks to growth including elevated interest rates and oil prices. However, strong investment in AI infrastructure and resilient consumer spending provide support to economic activity and the outlook for bank and credit...

ABA economists believe that the lower-than-expected inflation reading is a potential tailwind for the broader economy. Lower inflation supports household purchasing power which could improve credit performance and consumer loan demand.

The Federal Open Market Committee once again voted to maintain the target range of the federal funds rate at 3.5%-3.75%, but three members voted against the action, instead preferring to raise the rate.