Economics
Sluggish Bank Lending Is The New Focal Point for Trump Reality Check
- Commercial, consumer lending slowdown may be lagging indicator
- Cooling bank loans contrast with bouyant optimism data
Investors Prepare for Next Phase of the Trump Trade
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A slowdown in bank lending is turning into ground zero for a debate over the growing gap between economic hope and reality in the wake of Donald Trump’s U.S. election win.
The deceleration in loans made to companies and consumers has befuddled some analysts who worry that the worst growth rate in about six years bodes ill for the U.S. recovery at a time when expectations remain high. With credit acting as the lubricant for economic expansion, solving the mystery of the downturn has gained fresh urgency as investors wait to find out if the enthusiasm tied to Trump’s pro-growth agenda will translate into a tangible boost.