US Senator Elizabeth Warren, now a Democratic presidential candidate, warned Monday that the US economy is at risk of a recession, largely due to high levels of debt among both consumers and businesses, according to American Banker.
Key quotes (Source: American Banker, Reuter, Medium)
“Warning lights are flashing. Whether it’s this year or next year, the odds of another economic downturn are high “” and growing.”
“Congress and regulators should act immediately to tamp down these threats before it’s too late.”
” Families may be able to afford these debt payments now, but an increase in interest rates or a slowdown in income could plunge families over a cliff.”
“Leveraged lending “” lending to companies that are already seriously in debt “” has jumped by 40% since Trump took office.”
” The risks of leveraged lending are exactly the kind of thing Financial Stability Oversight Council (FSOC) is supposed to monitor, but the Trump-era FSOC is falling down on the job.”
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