FED'S JOHNSON SEES RISKS IN DEBT LOAD GROWTH
Federal Reserve Board Vice Chairman
Manuel Johnson said the rapid recent growth in corporate and
household debt burdens posed risks to the economy but should be
kept in perspective.
    The heavy debt load "is one of our major concerns ... the
risks are significant," he said in response to questions from
the Eastern Economic Association, an academic group.
    However, he added, the recent bull market on Wall Street
had also made corporate equity levels soar, keeping corporate
debt to equity ratios about constant.
    Similarly, he said household net worth has increased at a
faster pace than household debt "so that household debt-to-asset
ratios have once again gone down."
    Nonetheless, "I think that it's something to watch
carefully, and obviously it's something we do," he said.
 Reuter
