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Baltimore Bridge Collapse Could Have Economic Consequences for US in 2024 – BERNAMA

Byeditor

Apr 4, 2024

In her remarks at Washington University in St. Louis, US Federal Reserve Board Governor Adriana Kugler expressed concerns about the impact of the recent collapse of a major bridge in Baltimore on the US economy. She noted that the collapse could pose risks to the economy due to disruptions in shipping networks. However, Kugler also mentioned that shipping networks seem to be adapting to the incident.

Kugler also highlighted another potential risk to the economy, which is stronger consumption growth than expected, driven by wage gains across all income groups. This could have implications for inflation and economic activity.

The collapse of the bridge in Baltimore occurred in the early hours of March 26 when a commercial Singapore-flagged cargo ship hit the Francis Scott Key Bridge. This incident resulted in the bridge collapsing and at least eight people from a construction crew falling into the water. As a result, ship traffic in the port of Baltimore was suspended, leading to major disruptions in the supply chain.

Overall, Kugler emphasized the importance of monitoring both upside and downside risks to the economic outlook. The recent bridge collapse in Baltimore and its effects on shipping networks serve as a reminder of the potential vulnerabilities in the economy.

By editor

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