US Business Lending Hits Highest Level Since 2020

Federal Reserve data shows commercial and industrial loans at U.S. banks surged by $254 billion year-over-year, reaching $2.93 trillion for the week ending August 21 — the highest level since June 2020 and the largest annual increase since March 2023. Loans rose another $8.4 billion in the most recent week alone, now sitting just $137 billion below their May 2020 peak. The rebound in business borrowing comes even as inflation has remained above 3% for five consecutive months, according to the data. Analysts see the surge as a sign that American businesses are pushing forward with expansion plans despite persistent price pressures, a potential bright spot for the economy as the Fed weighs its next moves on interest rates.