(CitizensOutpost) As previously reported, The Fed has increased interest rates by a quarter of a percent in an effort to spark inflation. Seemingly in anticipation of this change, the first week of March has already recorded a 0.75% drop in foreign-related loans and leases:
The contraction of foreign loans comes at a time when loan growth by U.S. banks has been slowing. Year over year loan growth by the 25 largest U.S. banks fell to around 3.35% in early March, down from 7.18% a year earlier. Overall loan growth by commercial banks has fallen to around 4.28%.
Last year, foreign banks were approving loans at a quicker pace than their U.S. equivalents, but that changed in the tail end of 2016 when foreign bank growth rapidly declined.
There is a continuing race between the economic infusion that the Trump administration has been promoting and the countering policies of the Federal Reserve and there are sure to be many more bumps along this economic road.