Deleveraging Is Restraining U.S.Economic Growth, Porcelli Says: Tom Keene

The U.S. has yet to recover from the credit crunch that crippled the economy and that’s continuing to restrain growth, said Tom Porcelli, chief U.S. economist at RBC Capital Markets Corp. in New York.

“You have an environment where deleveraging is taking place and actually more specifically is still ongoing,” Porcelli said today in a radio interview on “Bloomberg Surveillance” with Tom Keene.

“That’s true not just for individuals but it’s true for the banking industry in general,” Porcelli said. “The one thing that is really striking to us is there’s simply no demand for loans at this point and that’s one of the reasons why we can continue to expect such a growth backdrop.”

Lenders have been retreating to the safety of Treasury bills, notes and bonds, according to statistics from the Federal Reserve earlier this month, a sign of sluggish growth and dormant loan demand.

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To contact the reporters on this story: Vincent Del Giudice in Washington; Thomas R. Keene in New York

To contact the editor responsible for this story: Christopher Wellisz at

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