On Thursday’s broadcast of “CNN This Morning,” Jason Furman, professor of economic policy practice at Harvard University and the Harvard Kennedy School, chaired the Economic Advisory Board under President Barack Obama, and will be the chairman of the Economic Advisory Council. I chaired the committee. The National Economic Council under President Bill Clinton said the big borrowers in the bond market are seeing lower interest rates, while those at the bottom who are borrowing from small businesses and smaller local banks. said there was a “credit crisis” damaging to.
Co-host Poppy Harlow asked:[Y]They said they didn’t know how serious the bank’s problem was. But I heard Chairman Powell say yesterday that “our banking system is healthy and resilient, with strong capital and liquidity.” Is it…? “
Furman replied: First, up to $250,000, and higher coverage. They believe in ensuring that everyone can withdraw all deposits. That said, another question is whether and how much the banks intend to continue lending. Certainly less than before. What they don’t know is how big the credit crisis is for the economy. “
Harlow then said, “That credit crunch is what Larry Summers warned about when he was with us last week. It doesn’t hurt big companies.”
Furman said, “Yeah, absolutely. If you’re a big company, you might be borrowing in the bond market. Interest rates on these are actually going down, not up. You get loans from really big banks. But if, like many small businesses, you have a loan from a local or smaller bank, the interest rate they offer should be fine for you. It might look like it, but they might not want to take out a loan at that rate.”
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