Too Hot, Too Cold, or Just Right?

The Week Ahead

August 28, 2017

Economists seem to be worried about US business borrowing being too hot or too cold at the same time. But maybe, like baby bear’s soup, it’s actually just right.

Those worried about too little borrowing are citing a steep deceleration in growth for banks’ commercial and industrial loans, a phenomenon previously seen only during or immediately after recessions. As the story goes, if banks aren’t lending to business, we’re missing out on the financial greasing of the wheels.

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