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Mission Accomplished?
The New York Fed's monthly consumer survey doesn't typically make headlines, but the latest installment, released on Monday, was notable in at least two respects.
First, consumers' perceptions of credit access improved meaningfully. The poll, which covered January, was conducted at a time when speculation around imminent rate cuts from the Fed ran rampant.
That speculation wasn't (and isn't) confined to the financial pages and Wall Street. Fed policy was front-page news late last year and earl
Perhaps banks and non-banks who tightened up on consumer credit in 2023, whether for liquidity reasons or economic concerns, have started easing the taps open in 2024.
The data over the last few months has been remarkably good from the Fed’s point of view. Maybe that pushes the start of rate cuts out a few months, but all in all, you know the old saying. “Happy Fed, happy home”. Better than the alternative. “When Momma ain’t happy, no-one’s happy”.