Fed SLOOS Survey: US Banks Report Tighter Lending Standards, Weaker Loan Demand in Third Quarter

The Federal Reserve's Senior Loan Officer Opinion Survey (SLOOS) revealed that US banks reported tight lending standards and weak demand for loans in the third quarter, although there was some improvement compared to the second quarter. The survey indicated that banks tightened lending standards for businesses and households, leading to a broad decline in loan demand. This trend suggests a potential slowdown in economic growth as credit contracts. Additionally, two Fed officials warned that the US economy has yet to experience the full impact of past interest-rate hikes, implying further economic deceleration.