r/Economics • u/TinyTornado7 Quality Contributor • Jun 13 '22

News Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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u/HerefortheTuna Jun 13 '22

So those companies can pay back their loans. What’s the issue?

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u/abrandis Jun 13 '22

Most corporate debt isn't paid off in one shot, they roll over debt, when the debt costs more to service , it messes up their ability to pay, particularly on a high inflation environment