Tighter credit, lending conditions build case for Fed policy hold

U.S. Federal Reserve officials will likely leave their policy rate on hold at next week's meeting thanks in large part to a new dynamic unfolding before them: Other forces are finally doing the work for them. While the benchmark rate they set every six weeks or so has sat unchanged since July – a horizon that now looks to extend to December if not longer – rates on the open market that determine borrowing costs for businesses and consumers have kept climbing and now look poised to finally slow what has been a surprisingly strong economy. Indeed fresh tidbits on the lending environment are likely to feature prominently in briefing materials ahead of the Federal Reserve's Oct 31-Nov. 1 rate-setting meeting.