US business debt a 'moderate' economic risk: US Fed's Powell

WASHINGTON: The American private sector's mounting debts pose a"moderate" risk to the world's largest economy, Federal Reserve Chairman Jerome Powell said on Monday .

"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 to households and businesses should conditions deteriorate," Powell said.Economists warn that after years of economic recovery and low interest rates, companies across the spectrum of US industries now frequently have debts that are several times greater than their earnings, with debt growing faster than the economy for the last decade.

Banking reforms after the crisis have made the financial sector resilient enough to handle such losses, there are few signs of an asset price bubble and the investment vehicles used to trade in debt are more sound, according to Powell.Channel NewsAsia - Sentifi topic widget

High debt = High risk. USA have very high debt. Very high risk.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Local education start-up Cialfo raises US$3 million to expand into US marketSINGAPORE - Singapore-based education start-up Cialfo announced on Tuesday (May 14) that it has raised US$3 million (S$4.1 million) in funding as it expands into the US market.. Read more at straitstimes.com. this is ur intern place right cennicchan stanley~~
Source: The Straits Times - 🏆 8. / 63 Read more »

Hillhouse Capital, SGX backs US$60m investment into US bond trading platform TrumidTRUMID, a New York-based fintech startup and bond trading platform, has secured fresh investment from global investment firm Hillhouse Capital in a US$60 million funding round. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »