The recent collapse of a major bridge in Baltimore has raised concerns about potential risks for the US economy, particularly in terms of its impact on shipping networks. Speaking at Washington University in St. Louis, US Federal Reserve Board Governor Adriana Kugler acknowledged that while shipping networks seem to be adjusting following the incident, there may still be some risks to consider.
Kugler highlighted the potential for both upside and downside risks in the economy. She noted that global developments, such as conflicts in Europe and the Middle East, could lead to disruptions in commodity prices and shipping networks. The recent bridge collapse in Baltimore and its effects on the Port of Baltimore may also pose a risk, although it appears that shipping networks are adapting to the situation.
One potential risk identified by Kugler is the possibility of stronger-than-expected consumption growth, driven by wage gains across all income groups. This could impact the overall outlook for economic activity in the US.
In light of these risks and developments, it will be important for policymakers and businesses to closely monitor the situation and take necessary steps to address any challenges that may arise. Stay updated with the latest news and information from BERNAMA to stay informed about developments in the US economy and beyond.
