The Fed, interest rates, deficit spending, and loan growth
September 22, 2009 at 15:19 PM EDT
[Skip to the end] Loan growth is also to some degree a function of interest rates. Lower rates = lower loan growth due to the reduced compounding of interest for many borrowers. Additionally the increased federal deficit spending is restoring income and savings of financial assets, reducing the nedd to borrow to sustain spending. Fed Effort to Stoke [...]