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Higher interest rates will slow the pace of borrowing and consumer spending in coming months, economists said.
The pace of borrowing has remained relatively subdued, though recently there are signs of increased demand for finance by households.
But states didn't have the option of continuing the pace of borrowing they had done in the 2008 and 2009 fiscal years.
In a statement accompanying the rate decision Tuesday, the central bank governor, Glenn Stevens, hinted at the divergent trends, saying that although there had recently been "signs of increased demand for finance by households," the pace of borrowing had remained "relatively subdued".
Similar(56)
Post-crisis, the pace of such borrowing is muted, and likely to stay that way.
Most of the 55 votes on raising the debt limit over the past 35 years contained no extraneous language at all little or no specific relevance to the pace of federal borrowing.
The current pace of borrowing and spending is only viable over the short term.
[C16.] Consumer Borrowing Surges in U.S. Consumer debt surged in December for the second consecutive month, fueled by holiday spending and capping a year that had the fastest pace of borrowing since 1996, Federal Reserve figures showed.
Consumer debt surged in December for the second consecutive month, fueled by holiday spending and capping a year that had the fastest pace of borrowing since 1996, Federal Reserve figures showed today.
And despite New Jersey's having some of the largest debt burdens in the nation, it has recently slowed its pace of borrowing.
Personal spending rose in July at twice the pace of incomes as consumers borrowed to make purchases and the savings rate fell to a record low, government figures showed today.
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