Financial Digest

Rate hikes will bite as 37% of US companies in trouble: Fed economists

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 51%

Finance Finance Headlines News

Fed economists say a historic 37% of US companies are in big trouble - and warn that could worsen the fallout from fighting inflation

Federal Reserve economists just warned a historic surge in the percentage of distressed American companies could worsen the fallout from the US central bank's fight against inflation.

That's likely because debt-ridden companies will balk at spending money on new equipment or facilities, hiring more people, and ramping up production. The Fed has already hiked interest rates from nearly zero to north of 5% since last spring in an effort to curb inflation, which spiked to a 40-year high of more than 9% last year. After 10 consecutive rate hikes, the central bank has helped to bring inflation down to about 4%.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in FİNANCE

Finance Finance Latest News, Finance Finance Headlines

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

Biden's regulators poised to turn up the heat on big banksThe move comes amid growing concern about the banking system's health as corporate and consumer borrowers absorb a series of punishing rate hikes by the Fed.
Source: politico - 🏆 381. / 59 Read more »