"Wave that flag, wave it wide and high"/Dallas Banking survey/A dove cries/Eurozone CPI/Oil

Today will be my last writings of the week as I'll be taking the next few days off. Have a relaxing holiday. 

"Wave that flag, wave it wide and high," https://x.com/deadandcompany/status/1807869363598315939

Yesterday the Dallas Fed released its June Banking Conditions Survey and it reflected a still tight lending and demand for loans environment. It also points to what I've been saying since last year that I've been more worried about a 'death by a thousand cuts' type economic response to the higher rate backdrop rather than something more immediate and dramatic. 

It said, "Loan demand declined for the seventh period in a row, and most bankers expect a further deterioration over the next six months. Overall loan volumes continued to fall, with particular weakness seen in consumer lending. While commercial real estate and commercial and industrial loan volumes continued to see marked volume declines, residential real estate lending remained stable. Loan nonperformance increased, with the rise led by commercial real estate loans. Credit standards and terms continued to tighten, and loan pricing continued to rise. Bankers’ outlooks remained pessimistic, with contacts expecting a further contraction in business activity and an increase in nonperforming loans over the next six months."

These were some comments from respondents: