Fed Escalates Warnings on High-Risk Corporate Debt

The video discusses the rising risk of corporate debt as highlighted in the Federal Reserve's financial stability report. It notes the increase in corporate debt since 2008 and the potential risks posed by businesses with high debt loads taking on risky loans. The report also highlights deteriorating credit standards and the potential for economic downturns to be amplified by these risks. An upcoming interview with Dallas Fed President Rob Kaplan will further explore these issues.

What does the Federal Reserve's stability report indicate about credit standards?

In what ways could an economic downturn amplify the risks associated with corporate debt?