US corporate failures set to register 13-year high – report

Lazy eyes listen


According to MarketWatch, Guggenheim Investments stated this week that corporate bankruptcies in the United States could reach their highest level since 2010 due to a steep surge in borrowing prices and economic uncertainties.

According to the data, more than 450 firms have filed for bankruptcy protection this year as of the end of August, exceeding annual totals for the previous two years.

According to Guggenheim experts, a reacceleration of the US economy is unlikely in the foreseeable future due to a lack of supporting factors.

“The fading of these tailwinds will be gradual, but the peak of their economic support is now behind us.” With less assistance from disinflation, fiscal policy, and the labour market, the economy is expected to decline by the end of the year.

Borrowing costs have surged since the Federal Reserve began to hike its policy rate to its current range of between 5.25% and 5.5%. On Wednesday, the regulator kept the benchmark rate unchanged at a 22-year high but signaled it could hike rates again in its fight to bring down inflation.