Quote ” Fifteen years ago, everyone was talking about whether households were borrowing too much. Today everyone is talking about whether businesses are borrowing too much”. Jerome Powell, May 20, 2019

” In public discussion of this issue, views seem to range from “This is a rerun of the subprime mortgage crisis” to “Nothing to worry about here.” At the moment, the truth is likely somewhere in the middle. To preview my conclusions, as of now, business debt does not present the kind of elevated risks to the stability of the financial system that would lead to broad harm to households and businesses should conditions deteriorate. At the same time, the level of debt certainly could stress borrowers if the economy weakens. The Federal Reserve continues to assess the potential amplification of such stresses on borrowers to the broader economy through possible vulnerabilities in the financial system, and I currently see such risks as moderate”.

source:https://www.federalreserve.gov/newsevents/speech/powell20190520a.htm

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