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The Fed has enabled an army of debt-laden 'zombie' companies — and its expected rate cut could make the situation even worse

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Lower interest rates make it less expensive for companies to pile on debt, including the most risky ones.

The Federal Reserve is expected to cut interest rates this week for the first time since the depths of the financial crisis. That move that would likely be cheered by markets and the White House, but comes with significant risks for the country. Lower interest rates could encourage the rise of so-called zombie companies, or those that are at least 10 years old and unable to make interest payments with profits. Visit Markets Insider for more stories.

The Federal Reserve is expected to cut interest rates this week for the first time since the depths of the financial crisis. That move that would likely be cheered by markets and the White House, but comes with significant risks for the country. Lower interest rates could encourage the rise of so-called zombie companies, or those that are at least 10 years old and unable to make interest payments with profits. Visit Markets Insider for more stories.

 

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