The Fed's Fund Rate Increases Could Be a Positive Catalyst for the Banks

If we really have seen the last of the Fed fund rate increases, that's going to be a real positive catalyst for the banks on the next six to 12 months. The loan growth in the US banking industry typically grows at the nominal rate of GDP. So if we see nominal GDP growth this year of four or five percent, then we should expect three to four percent total loan growth this year.