Tue, Jul 9, 2013 7:34 PM EDT 1:02
Uncertainty about how well the Federal Reserve's unconventional policy tools will work means using them more aggressively would not necessarily bring U.S. unemployment and inflation back to normal levels more quickly, a top Fed official said. The Federal Reserve said Americans spent $19.6 billion more using credit in May than in April, the largest rise since May 2012. Hedge fund investors were recently borrowing aggressively to fund stock bets relative to their strategies since the financial crisis, a Federal Reserve survey showed on Monday. The Fed's Senior Credit Officer Survey showed one in five respondents reported hedge fund client's leverage, a measure of the amount of debt used to make financial bets, was near its highest level for equity-oriented funds since a pre-crisis peak.