Fed’s Rosengren: US Economy Vulnerable Due to Corporate Debt

The United States economy is more vulnerable due to rising debt levels by some companies prior to the Coronavirus crisis, according to the President of the Federal Reserve Bank of Boston, Eric Rosengren, said on Tuesday, Reuters reported.

“Those segments of the labor market most affected by amplified business cycles, when financial stability ‘guardrails’ are limited, can be populated by those workers who are most vulnerable and least able to adapt to the changed economic environment.”

“That imbalanced human toll is a bad outcome for democracy as well as the economy.”