News Formal

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

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 24 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 51%

France Nouvelles Nouvelles

France Dernières Nouvelles,France Actualités

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.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 729. in FR

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stocks edge lower on mega-cap tech losses as investors await the FedBoth the S&P 500 index and Nasdaq composite fell in US trading on Monday, while the Dow Jones Industrial average edged higher. Aye right. If only things were so simple.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Wall Street set to open lower as focus shifts to Fed meeting, Apple earningsWall Street's main indexes were set to open lower on Tuesday, as worries ab... Meh.
La source: Reuters - 🏆 2. / 97 Lire la suite »

Asia stocks set to trade lower as investors await Fed rate decisionStocks in Asia were poised to trade lower on Wednesday amid dampened expectations for a resolution to the U.S.-China trade war. Meanwhile, investors await the U.S. Federal Reserve's announcement of its decision on interest rates, set to happen on Wednesday.
La source: CNBC - 🏆 12. / 72 Lire la suite »