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.

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Auto loans also fell to 2.1% YoY.

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The good news? Real estate lending fell too, but to 5.1% YoY.

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Have the stimulative effects of The Fed’s ZIRP and QE policies run out?

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Yes, its a heartche tonight for bank lending and Fed monetary policies.

Fed Chair Janet Yellen Testifies At Senate Hearing On Semiannual Monetary Policy Report To Congress