Latest / The Macro Memo with Fexingo: Daily Conversations on Inflation, GDP, and Federal Reserve Policy
The 3.63 Fed Funds Rate Is Squeezing Small Business Lending
The Fed has held the federal funds rate at 3.63 percent since May, and while headline inflation is slowly cooling, a less obvious casualty is emerging: small business lending. In this episode, Lucas and Luna examine new data from the Fed's Senior Loan Officer Opinion Survey showing that banks are tightening credit standards for small firms at the fastest pace since 2020. With the prime rate tied to the funds rate, variable-rate loans for Main Street businesses now carry interest costs near 8 percent. The hosts break down why this is happening, how it ties to the inverted yield curve—with…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.