Economics
Fed’s Bostic Says U.S. Businesses Face Survival Crisis in May
- Credit challenges becoming ‘more widespread and more acute’
- Atlanta Fed chief urges governments, banks to provide support
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Federal Reserve Bank of Atlanta President Raphael Bostic said many U.S. businesses will struggle as early as next month to survive amid coronavirus-related shutdowns and urged both governments and banks to provide relief quickly to help prevent widespread failures.
“What we are hearing from our contacts is that May is going to loom as a large month, in terms of the transition of concern from this being a liquidity issue -- one where we are really talking about cash flows -- to this perhaps translating and transferring into a solvency issue, and whether companies can exist at all,” Bostic said Wednesday via videoconference to civic groups in Birmingham, Alabama.