We weighted their advice against our own judgment and acted as we did. I do hope we get some credit for putting it out in the public domain. WSJ: How difficult was it to make those decisions with the committee so close to you disagreeing? SUBBARAO: It’s difficult. It’s certainly something you don’t do lightheartedly. You do think twice before going against their advice.
While the lagged response of loans to non-financial corporations to economic activity is a normal feature of the business cycle, the data over the past few months point to a possible discontinuation of the earlier downward trend in annual loan growth.