NY Times 26-07-2023
https://www.nytimes.com/2023/07/26/business/credit-markets-uncertainty-interest-rates.html
If the Federal Reserve keeps interest rates high, bankruptcies and defaults could accelerate as debt comes due and businesses are forced to renew their financing at much higher borrowing costs.
The bankruptcies that have happened this year haven’t seriously dented the economy so far. But analysts have warned they are symptomatic of the excesses that developed during a decade of historically low interest rates. And financial stress is unpredictable, so it poses a wild-card risk for the Fed as it tries to tame inflation. It hopes to do that without causing a recession.
2023-07-30
