US firms may need big investment cuts - Chicago Fed paper


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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