The US Federal Reserve System (FRS) predicted new problems for the national economy, writes Reuters. The leadership of the American central bank spoke about possible threats in a speech before Congress with a traditional report for the past six months.
The Federal Reserve estimates that the country remains at “significant risks” of a start-up collapse – even as there are growing signs of economic recovery from the effects of the coronavirus pandemic.
The Fed is most concerned about the high debt load of businesses, both large and small. The situation is not mitigated by such positive factors as large cash balances in corporate accounts, low interest rates and recovery of economic growth.
Corporate borrowing is now at the highest level in the history of the United States, and in the near future this figure may rise even more due to the financial assistance package from the Joe Biden administration totaling $ 1.9 trillion.
The funds will be distributed between businesses and households in the form of soft loans with the possibility of further write-offs and lump sum payments, as well as increased unemployment benefits.