The industry had tightened up last year in the face of COVID-19. But as the economic outlook improves, banks are now easing criteria amid heightened competition, according to the Federal Reserve’s survey of loan officers.

The timing of major upcoming shifts in Treasury supply and demand will be crucial in determining if the recent downward trend in yields continues or finally reverses.

Federal Reserve officials are moving closer to when they can start reducing massive support for the U.S. economy.

Consumer price spikes, which in June surged the most since 2008, will likely be a temporary feature of an economy that’s quickly recovering from the pandemic, said Federal Reserve Bank of San Francisco President Mary Daly.

The president has a chance to make his mark on the central bank as the terms of Federal Reserve Chair Jerome Powell and Vice Chair of Supervision Randal Quarles near their end. He will face pressure from progressives to pick reform-minded leaders, while moderate Democrats and Republicans in the narrowly divided Senate might favor reappointing Powell.

Officials responded to a more elevated outlook for prices by penciling in two interest-rate hikes for 2023, according to the median of their projections, while seven of 18 wanted to raise interest rates next year.

Federal Reserve officials who favor prioritizing mortgage-backed securities when they begin to scale back asset purchases have added Governor Christopher Waller to their ranks.

Edward Al-Hussainy, senior interest rate and currency analyst at Columbia Threadneedle, will discuss the economy, inflation and the Federal Reserve.

Corresponding Treasury yields seesawed over the past week, as some experts see “transitory” inflation persisting.

Signs from the Fed regarding tapering and interest rate hikes could spell the end to the year’s low rates.