Fed Beige Book; Loan Demand Remaining ‘Tepid’ For November

Posted November 30, 2023

The Federal Reserve Board released its latest Beige Book report which shows Kansas City and the Tenth District’s economic activity declining slightly with loan demand remaining “tepid” across banks in the district.

The Beige Book—a report outlook that gathers anecdotal information from economists, market experts, and other sources—described Kansas City consumers as likely to “share a
roof and share meals”

Meaning consumers are shifting toward more budgeting options. More individuals are moving away from single-bedroom rentals and looking for more multi-family housing units available. In the past month, more multi-family housing startups have been a priority for home builders rather than single-family units.

The October Beige Book stated more banks are experiencing a loan diet due to diminishing credit quality. That trend continued as loan demand remained relatively similar at banks across the district as lenders focused on maintaining sound credit quality.

Additionally, the Fed reported several bank owners expected further deterioration in credit quality over the next six months.