The American newspaper The New York Post reported that the US Federal Reserve System is not coping with the consequences of the crisis caused by the coronavirus pandemic, which will obviously lead to a financial crisis.
According to the newspaper, “Wall Street is likely to face a harsh winter as markets continue to falter and major clients go out of business.”
The article highlights that the volume of traditional IPOs has fallen significantly, and in large investment houses, management is preparing for layoffs in advance, and many debtor companies will declare themselves bankrupt or sell their assets.
Earlier, a member of the White House Economic Council and adviser to the President of the United States, Jared Bernstein, said that the US authorities still have a lot of work to do due to uncomfortably high inflation rates, annual inflation in the country in August slowed less than expected, to 8.3%.
In early May, the Federal Reserve announced a gradual reduction in assets on its balance sheet over a three-month period, and the regulator raised the key interest rate several times in an attempt to contain rising inflation and normalize monetary policy, which was hit by the introduction of anti-crisis measures during the corona pandemic.
Source: RIA Novosti