This is not good necessarily good news. This is the newly printed money, which has been sitting dormant in the form of excess bank reserves finding its way into the economy — a harbinger for further price inflation.
Some big U.S. banks are starting to increase their lending to businesses as demand for loans rises and healthier banks seek to grab customers from weaker rivals.
After declining steadily for most of the past two years, the amount of commercial and industrial loans held by commercial banks inched upward during the past two months, according to the Federal Reserve.
Moody’s Analytics estimates that commercial and industrial lending in the fourth quarter has grown 0.2% from the third quarter, to $1.22 trillion, the first quarterly increase in two years. Moody’s predicts such lending will rise 3% next year.
An uptick in business lending is an optimistic sign for the economy and can help to make the recovery self-sustaining.
(Read more from wsj.com)