The central bank's Open Market Committee did not fiddle with the benchmark rate on overnight loans between banks. It stays at 5.5 percent for the ninth month. John Combs of NationsBank in Abilene agreed, saying borrowing should remain strong. The economy is strong. Lindley is pleased, but takes the news with a pinch of salt.
Bankruptcies are up.
Past dues are up. Credit card past dues are climbing. He blames the negatives on credit card companies that are saturating the market with low-interest rate, high credit limit offers. The monetary policy committee had several issues to juggle. It played it safe, balancing a strong economy and fragile financial markets oversees.