Federal Reserve Reports Stable Commercial Lending Amid Inflation

The Federal Reserve System reported that lending standards for commercial and industrial loans remained largely unchanged during the second quarter of 2026. The central bank noted increased loan demand from middle-market and large firms, contrasting with mixed lending standards for household loans and a decline in demand for residential real estate.

These trends emerge as the U.S. economy maintains solid growth and a stable job market, though it continues to face persistent inflation. In a recent policy move, the central bank held its interest rate target range steady between 3.5% and 3.75%.

Chairman Kevin Warsh declined to provide forward guidance on whether the bank will raise rates further to achieve the 2% inflation target. The data was released as part of the July Senior Loan Officer Survey.