By NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The Midwest economy is growing, but not as fast, according to a new survey from Creighton University economist Ernie Goss.
"Growth that we've seen in the past few months is going to slow down a bit," Goss said. It's something we can live with."
The Rural Mainstreet Index is down in August to 65.3. Anything above 50 indicates a growing economy. Rural Bank CEOs are concerned about the $3.5 trillion spending measure still working its way through Congress, though.
"There's just almost no support out there among the bankers for this big bill," Goss said. "Many think it should be rejected outright. Those who are opposed to it are primarily on the side of just too much spending. Some are against it because of the inflationary pressures."
Despite the inflation, though, the bankers are more concerned about low loan demand and low interest rates than are concerned about inflation, as it pertains to their bank's situation.
"We asked the bankers to look ahead," Goss said. "They were much less confident this month than they were the previous month and even before that. Confidence is coming down. Of course, it doesn't help, the withdrawal from Afghanistan and all the things surrounding that, you've got other issues with the stimulus bill and other issues in Congress and COVID-19 is still an issue out there, even in the rural areas of the region that we survey."
Goss does believe that the federal reserve has to stop buying mortgage backed securities at the level it has been in the coming months. If that happens, it is likely that the related interest rates will rise.