US Federal Reserve Chair Jerome Powell is seen in Washington in January 2019WASHINGTON - The American private sector's mounting debts pose a "moderate" risk to the world's largest economy, Federal Reserve Chairman Jerome Powell said Monday. "At the same time, the level of debt certainly could stress borrowers if the economy weakens." Should interest rates rise or the economy slow, this could leave them struggling to repay, creating a risk to the wider economy. "Corporate debt relative to the book value of assets is at the upper end of its range over the past few decades," said Powell, adding that investment-grade corporate debts were verging on junk. The International Monetary Fund also warned recently that rising debt levels posed a threat to the global economy.

Source: Bangkok Post May 20, 2019 23:15 UTC