Economics
Fed Sounds Alarm on Commercial Real Estate, Business Bankruptcy
- Commercial real estate prices ‘susceptible to sharp decline’
- Pandemic exposes vulnerability of money market mutual funds
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The Federal Reserve warned of significant risks of business bankruptcies and steep drops in commercial real estate prices in a report published on Friday.
“Business leverage now stands near historical highs,” the central bank said in its semi-annual Monetary Policy Report to Congress. “Insolvency risks at small and medium-sized firms, as well as at some large firms, remain considerable.”