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Americans lost out on $420B in bank loans because of the Federal Reserve, new research says

According to a recent analysis by researchers at the University of California, Berkeley, and the Federal Reserve Bank of New York, Americans missed out on approximately $420 billion in potential bank loans due to the Federal Reserve's monetary tightening policies. The study suggests that the Fed's decision to raise interest rates to combat inflation has significantly reduced the amount of credit available to consumers and businesses. This contraction in loan availability has not only slowed economic growth but also disproportionately affected small businesses and lower-income individuals who rely more heavily on bank financing. The research highlights the unintended consequences of the Fed's efforts to manage inflation, showing how higher interest rates can stifle economic activity by making borrowing more expensive and less accessible.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/economy/americans-lost-out-on-420b-in-bank-loans-because-of-the-federal-reserve-new-research-says/ar-BB1rsevY ]