Fed’s Powell plays down financial stability risks of corporate loan surge

30 January 2019 11:16pm
US Federal Reserve Chairman Jerome Powell downplayed financial stability risks of a corporate debt boom, saying banks are monitoring debt more closely than they did before the financial crisis.

“We’ve called out corporate debt as a risk — more of macroeconomic risk, I think, than a financial stability risk,” he said in a news conference today after a Federal Open Markets Committee meeting on interest rates.

Powell added that the debt surge is a “concern," and something that the Fed is watching.