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Article snippet: WASHINGTON — The Federal Reserve’s view of the American economy, which it updated Friday in a semiannual report to Congress is out: steady growth still impeded by a range of problems. The report gives the reasons for confidence, describing the steady growth of consumer spending on the foundation of a solid economic expansion. However, it also highlighted a number of reasons that growth has remained relatively slow by historical standards. The Fed raised its benchmark interest rate in June for the third consecutive quarter, a sign of confidence in the strength of the economy. It also announced that it planned to start reducing its securities holdings by the end of the year. The Fed pointed to evidence that lenders are seeking opportunities to take larger risks. It noted, for example, that companies with poor credit ratings are able to borrow at interest rates that are unusually close to the rates for companies with good credit ratings. The differences “now stand near the bottom of their historical ranges,” the Fed said. Yet demand for loans remains weak. “Apparent high risk appetite in asset markets has not led to increased borrowing in the nonfinancial sector,” the report said. In a similar vein, the Fed said banks reported a broad decline in loan demand during the first quarter of 2017, “even as lending standards on such loans were reported to be basically unchanged.” The Fed publishes the assessment, called the Monetary Policy Report, twice a year, in the winte... Link to the full article to read more