Chicago Fed President Austan Goolsbee said Monday his gut tells him that tighter credit is going to dampen the economy.
Chicago Fed President Austan Goolsbee said Monday that he is getting the sense that banks are pulling back on providing credit to the economy.
“I am certainly getting vibes….in the market and in the business context that a credit crunch or, at least, a credit squeeze, is beginning,” Goolsbee said, in an interview with Yahoo Finance.The Fed will release its first quarter survey of bank loan officers later on Monday. Markets are focused on how the banks describe their lending stance.
“That will slow the economy and we absolutely should take that into account when setting monetary policy,” he said.
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