We’ve got a heartache tonight … in terms of bank lending. Particularly commercial and industrial lending (C&I) and auto loans. Particularly since bank lending is the primary transmission vehicle for Federal Reserve policies.
C&I lending growth fell to 1.2% YoY, which has historically meant that a recession is close at hand.
Auto loans also fell to 2.1% YoY.
The good news? Real estate lending fell too, but to 5.1% YoY.
Have the stimulative effects of The Fed’s ZIRP and QE policies run out?