for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Company News

Fed's Rosengren says U.S. could face a credit crunch by year end if virus worsens

Sept 23 (Reuters) - The U.S. economy could face more foreclosures and business bankruptcies in the fall and winter if there is a rise in infections and no additional fiscal aid, conditions that could make it harder for consumers and businesses to access credit, Boston Federal Reserve President Eric Rosengren said on Wednesday.

Community and regional banks could especially come under stress if there is a rise in delinquencies in commercial real estate loans as businesses struggle to stay in operation, Rosengren said.

“I think the challenge is that we are very likely to face a credit crunch kind of issue as we get towards the end of this year,” Rosengren said in an interview with Reuters. (Reporting by Jonnelle Marte Editing by Chris Reese)

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up