In the wake of recent failures in some regional bank, Americans across the board are finding it harder to get credit.
Because smaller banks are so critical to small-business and consumer lending, many analysts predict the fallout from the Fed’s campaign to tame inflation will have dire consequences for the economy.
“Bank lending peaked in May of 2020 at 11 percent year-over-year growth,” Steve Hanke, professor of Applied Economics at Johns Hopkins University, told the Epoch Times. “Today, that number has slowed to 5.5 percent per year.
“Following the failures of Silicon Valley Bank, Silvergate Bank, and First Republic Bank, I anticipate that bank lending will continue to decelerate as the credit market tightens up,” said Hanke, who served on President Reagan’s Council of Economic Advisors….