Powell Plays Down Risk of Market Contagion From Evergrande Debt

Sept. 22, 2021, 7:23 PM

Federal Reserve Chair Jerome Powell said there is little direct U.S. exposure to debt of the Chinese company Evergrande but said it could impact global financial conditions.

“The Evergrande situation seems very particular to China, which has very high debt for an emerging economy,” he told reporters Wednesday during a press conference following a meeting of the policy-setting Federal Open Market Committee.

Fears of default by real estate developer China Evergrande Group have rattled global financial markets this week and raised concerns about the potential fallout for China’s economic outlook.

“Corporate defaults in the U.S. are very low right ...

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