Podcast: Understanding how monetary policy shapes SOFR

The U.S. manufacturing sector expanded in July for the seventh consecutive month. The ISM Manufacturing PMI registered 55.6% in July, a 2.3 percentage point increase from the June figure and the highest reading since May 2022.

For the first time in nearly 50 years, the Federal Reserve is proposing to comprehensively update the regulation governing extensions of credit to bank “insiders,” such as board directors, executives and major shareholders.

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...