11 DECEMBER 2025
For several years, the Federal Reserve and other Central Banks have been the dominant players in setting global financial conditions.
But that trend may be changing.
US bank loan growth is, slowly but surely, accelerating to a multi-year high.
This is not being led by the demand side. With the notable exception of the AI-capex boom, US consumption and investment levels remain sluggish.
However, the Trump administration is making banking deregulation a policy priority.
That is freeing up the commercial bank balance sheets, via less stringent reserve requirements, and sparking a nascent upturn in private sector credit creation.
Improved liquidity conditions should follow.
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