US firms may need big investment cuts - Chicago Fed paper

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US public companies may have to significantly cut back on investment and other forms of spending to remain solvent, say researchers from the Federal Reserve Bank of Chicago.

Over a quarter of all US public corporations could run out of cash to service debt by the third quarter if their spending patterns remained at pre-pandemic levels, according to Nicolas Crouzet and François Gourio.

Crouzet and Gourio attempt to quantify the liquidity and solvency risk of US public corporations during the

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