According to Reuters, Federal Reserve Chairman Jerome Powell expressed concern over the rise of business debt in the last few years, but did not believe comparisons to the decade-old subprime mortgage crisis were entirely warranted.
Reuters reported the Fed chairman’s remarks from an Atlanta Federal Reserve conference, where Powell was focused on the problems a lack of transparency in funding sources and corporate debt holders might cause the financial system should economic conditions worsen.
Reuters added Powell believes current business debt does not pose a systemic threat to the financial system, as very little is held with major banks. However, to discourage reckless loans, the Fed has no plans to lower interest rates this year.
