There are good signs for the economy as the U.S. bank credit grows. Recently, it has been growing at its fastest pace in three years, offering a new confidence to the Federal Reserve. Both commercial and industrial loans increased by an average annual pace of close to 10% in the third quarter – which is the highest they’ve been in a comparable quarter since 2008; this is in stark contrast to the 1.7% decline in the past four years, according to data from the Federal Reserve.
As Robert McTeer, a distinguished fellow at the Dallas-based National Center for Public Analysis said, “The bank-credit statistics argue that more stimulus isn’t needed.” He continued by saying that the trend “is very encouraging.”
Others agree that this news is encouraging. Federal Reserve Bank of Atlanta President Dennis Lockhart said, that the “improved loan demand” is “encouraging and that “businesses are more of a mind to expand.”