Jordan Pandolfo

Dec 6, 2024 | kansascityfed.org | Jordan Pandolfo

Subscribe Share by: Jordan Pandolfo Download Article The Federal Reserve began tightening monetary policy in March 2022 to combat higher inflation. This tightening, in turn, increased borrowing costs for a wide range of consumer financial products such as auto loans, mortgages, and credit cards. Higher borrowing costs can dampen demand as households use more disposable income to service interest expenses, which, in turn, can cool inflation.

Apr 18, 2024 | kansascityfed.org | W. Blake Marsh |Jordan Pandolfo

Subscribe Share Download Article Both higher interest rates and a decline in office attendance have prompted concerns about bank exposure to commercial real estate (CRE) risk. Banks are major lenders in the CRE market, providing nearly $3 trillion in financing to the sector. Moreover, CRE lending can make up a significant share of a bank’s total loan portfolio, particularly at small and regional banks.