Fed Survey Signals Credit Crunch and Tight Money Era Amid Recession Fears

A recent survey by the Federal Reserve Bank of New York found that 58.2% of Americans believe credit is much or somewhat harder to come by than it was a year ago, the highest since 2013. Another survey by the Federal Reserve Bank of Dallas found that lending has already plunged, with nearly half of institutions surveyed reporting a decrease in lending. The failures of Silicon Valley Bank, Signature, and Credit Suisse in Europe have shaken confidence in the banking system, which combined with the pressure of interest rate hikes, has made a recession look more likely. A credit crunch could erode American consumers’ strength, which for over a year now has been a critical guardrail against a recession.