Lending data highlights the significant impact of the Fed's tightening

Historically a lagging indicator, aggressive Fed tightening has already resulted in a major decline in bank lending growth, indicating that the Fed does not need to hike rates further.

Executive summary

Lending data shows that the Fed’s tightening has had a major impact

While debate continues as to whether the Fed will, or should, deliver any further interest rate hikes, commercial bank lending data shows that the Fed’s tightening has already had a major impact.

The overall level of commercial bank loans & leases have been largely stagna…