Federal Reserve Board Chairman Jerome Powell departs after speaking during a news conference following the Federal Open Market Committee meeting, at the Federal Reserve in Washington, DC, on June 14, 2023.
The Federal Reserve plans to keep hiking interest rates to stem inflation, which means an increase in corporate default rates is likely in coming months.
Earlier this week, Fed Chairman Jerome Powell said to expect more interest rate increases this year, albeit at a slower rate, until more progress is made on lowering inflation.
Bankers and analysts say high interest rates are the biggest culprit of distress.
While the most troubled companies have been affected recently, he expects companies with more financial stability to have issues refinancing due to high interest rates.
Persons:
Jerome Powell, Mohsin Meghji
Organizations:
Federal Reserve, Moody's Investors, Bankers, Partners, P Global Market Intelligence
Locations:
Washington ,, U.S, Canada