Ellen Zentner: The Lagging Effects of Loan Growth

This podcast episode discusses the impact of recent events, particularly in the financial system, on the U.S. economy. Experts highlight that tighter credit conditions due to higher funding costs for banks will likely slow down loan growth, making it harder for consumers and businesses to borrow. This, in turn, could lead to weaker economic growth. The extent and persistence of tightened credit conditions, as well as the banking system's response to it, contribute to the uncertainty around the magnitude of the economic slowdown.