Fed's Powell: Business debt no subprime crisis, but still merits reflection

ATLANTA - Federal Reserve Chairman Jerome Powell on Monday dismissed comparisons between the rise of business debt to record levels in recent years and the conditions in U.S. mortgage markets that preceded the 2007-to-2009 economic crisis, but even so said caution was warranted.

Despite that, he pointed to the lack of transparency about the funding sources and ultimate holders of corporate debt, and to risks that any economic downturn could worsen if indebted borrowers begin to fail as reasons for caution. That concern is another reason the Fed may be reluctant to cut interest rates, since lower borrowing costs could prompt firms to take on more debt.

“As of now business debt does not present the kind of elevated risks to the stability of the financial system that would lead to broad harm,” he said.

good read thank you

a bunch of crap.

Keep life centralized amongst a few parties...

Did you see that realDonaldTrump? High debt is not good.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

Fed Chair Powell: Business debt is rising but does not pose a threat to the systemThe issue of corporate debt has surfaced as companies continue to use the low rates the Fed has provided to lever up their balance sheets. bullshit. Debt makes the world go round Reactive not Proactive. Definition of bureaucracy.
Sumber: CNBC - 🏆 12. / 72 Baca lebih lajut »