High Corporate Debt Poses Risk to US Economy, Former Fed Chair Says

Fed chair Janet Yellen holds a news conference following the announcement of a rate hike in Washington, on June 14, 2017. Mark Wilson/Getty Images

WASHINGTON—Highly indebted firms are vulnerable to economic fallout from coronavirus and pose a big risk to the U.S. economy, according to Janet Yellen, former Federal Reserve chairwoman.

Before the COVID-19 pandemic, the economy was “generally in good shape” and the banking system had ample liquidity, Yellen said in a video conference hosted by the Brookings Institution on March 30.