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Tag Archives: credit

Is There Too Much Business Debt?

Anna Kovner and Brandon Zborowski By many measures nonfinancial corporate debt has been increasing as a share of GDP and assets since 2010. As the May Federal Reserve Financial Stability Report explained, high business debt can be a financial stability risk because heavily indebted corporations may need to cut back spending more sharply when shocks occur. Further, when businesses cannot repay their loans, financial institutions and investors incur losses. In this post, we review...

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Is the Recent Tax Reform Playing a Role in the Decline of Home Sales?

Richard Peach and Casey McQuillan HOUSING SERIES: Post 4 of 5 From the fourth quarter of 2017 through the third quarter of 2018, the average contract interest rate on new thirty-year fixed rate mortgages rose by roughly 70 basis points—from 3.9 percent to 4.6 percent. During this same period, there was a broad-based slowing in housing market activity with sales of new single-family homes declining by 7.6 percent while sales of existing single-family homes fell by 4.6 percent....

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Who’s on First? Characteristics of First-Time Homebuyers

Donghoon Lee and Joseph Tracy HOUSING SERIES: Post 2 of 5 In our previous post, we presented a new measure of first-time homebuyers. In this post, we use this improved measure to describe the characteristics of first-time buyers and how those characteristics change over time. Having an accurate assessment of first-time buyers is important given that the aim of many housing policies is to support the transition from renting to owning. A proper assessment of these housing policies...

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Deciphering Americans’ Views on Cryptocurrencies

Sean Hundtofte, Michael Lee, Antoine Martin, and Reed Orchinik Having witnessed the dramatic rise and fall in the value of cryptocurrencies over the past year, we wanted to learn more about what motivates people to participate in this market. To find out, we included a special set of questions in the May 2018 Survey of Consumer Expectations, a project of the New York Fed’s Center for Microeconomic Data. This blog post summarizes the results of that survey, shedding light on U.S....

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Global Trends in Interest Rates

Marco Del Negro, Domenico Giannone, Marc P. Giannoni, Andrea Tambalotti, Brandyn Bok, and Eric Qian Long-term government bond yields are at their lowest levels of the past 150 years in advanced economies. In this blog post, we argue that this low-interest-rate environment reflects secular global forces that have lowered real interest rates by about two percentage points over the past forty years. The magnitude of this decline has been nearly the same in all advanced...

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Five Actions to Strengthen the Euro Area Banking Union

By Atilla Arda, Daniel Hardy, and Maike B. Luedersen December 14, 2018 View of skyscrapers in the banking district in Frankfurt am Main, Germany: Progress has been made, but more needs to be done to strengthen the euro area’s banking union (photo: imageBROKER/Stefan Ziese/Newscom) Dealing with problem banks in a prompt, efficient, and even-handed manner is essential for the European banking union. Much progress has been made, but more needs to be done to strengthen both institutions...

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Just Released: A Closer Look at Recent Tightening in Consumer Credit

Olivier Armantier, Joelle Scally, Kyle Smith, and Wilbert van der Klaauw The Federal Reserve Bank of New York released results today from its October 2018 SCE Credit Access Survey, which provides information on consumers' experiences with and expectations about credit demand and credit access. The survey is fielded every four months and was previously fielded in June. The latest survey shows a decline in application rates for credit over the previous twelve...

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Economic Gains from Gender Inclusion: Even Greater than You Thought

By Christine Lagarde and Jonathan D. Ostry November 28, 2018 Raising women’s participation in the workforce can give a bigger boost to growth than previously thought (photo: Ahrens/Steinbach Projekte/fotogloria/Newscom) Despite some progress, the gaps in labor force participation between men and women remain large. To take just one example, no advanced or middle-income economy has reduced the gender gap below 7 percentage points. This uneven playing field between women and men comes...

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Just Released: A Look at Borrowing, Repayment, and Bankruptcy Rates by Age

Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw Household debt balances increased in the third quarter of 2018, a seventeenth consecutive increase. Total debt balances reached $13.51 trillion, a level more than 20 percent above the trough reached in 2013, according to the latest Quarterly Report on Household Debt and Credit from the New York Fed’s Center for Microeconomic Data. With today’s report we begin publishing a new set of charts...

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