2.19.21
On February 19, the Federal Reserve (Fed) submitted a monetary policy report to Congress which highlighted economic developments that suggest U.S. businesses could face greater risk of bankruptcy. Due to the economic struggles created by COVID-19, businesses have taken on more debt over the past year to stay afloat. Furthermore, the increase of Americans working from home, and low volumes of in person retail shopping could result in a steep decline in commercial real estate prices. In its report, the Fed stated, “Without structural reforms, the vulnerabilities demonstrated in March 2020 will persist and could significantly amplify future shocks.”