Former Fed Boss: Janet Yellen sees risk of new financial crisis

The former us Central Bank boss Janet Yellen has warned of the danger of a new financial crisis. Reason for this is the currently-driven deregulation of the financial sector. “I think things have improved – but then I think again, that there are gigantic holes in the System,” said the former Fed-Head of the TV station CNBC, according to a public conversation with the renowned Economist Paul Krugman in New York. “The tools to deal with emerging problems, are in the United States, not great.”

she was particularly concerned about the high debts of the company. American companies are in debt at the time of 9.1 trillion dollars. In 2007, a year before the financial crisis, the company’s indebtedness, in the case of only 4.9 trillion dollars. “The company’s debt is currently quite high and I think the danger is that if something else causes a downturn, this debt in the downturn, and extend for many companies, bankruptcies outside of the financial sector could provide,” said the Economist, who had left in February, the top of the most powerful Central Bank in the world.

Indirectly, you also criticized your successor, Jerome Powell, was nominated by Donald Trump. “I’m not sure that we are working on the problems as we should,” said Yellen. “That’s why I’m Worried that we might get a renewed financial crisis.”