As LIBOR rises—blowing past 1% yesterday, for the first time in nearly two years—more struggling junk-rated borrowers may end up with negative cash flow, unable to pay interest payments on their loans.
The order requires an assortment of federal agencies to research, and provide policy recommendations, on topics related to digital currencies, including the feasibility of a U.S. CBDC.
Fed Chair Powell told the House Financial Services Committee that he backs a quarter-point interest-rate hike this month, and he didn't rule out a larger move in the near future.
Fed and ECB strategy of moderation is fraught with risks. Still, one Fed president says, "abrupt and aggressive action can actually have a destabilizing effect on growth and price stability. The most important thing is to be measured at our pace."