From the Fed to Financials: Why US Commercial Banks Are Leading the Charge

A new wave of liquidity is quietly gathering momentum in the US financial system, but it isn’t coming from the Federal Reserve. Instead, banks are taking the lead, loosening the reins on lending, and channeling capital toward corners of the real economy that had been starved for funds. As the banking sector flexes its newfound muscles, the resulting credit expansion could reshape market dynamics from yields to equity valuations, setting the stage for an economic environment few anticipated just a year ago.