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

Shipping Disruptions and Unexpected Challenges: US Federal Reserve Board Governor Adriana Kugler on the Impact of a Recent Bridge Collapse in Baltimore

In her address at Washington University in St. Louis, US Federal Reserve Board Governor Adriana Kugler voiced concerns about the impact of a recent bridge collapse in Baltimore on the US economy. She highlighted that this event could pose risks to economic activity due to disruptions in shipping networks.

Kugler also mentioned that shipping networks are adapting to the incident, and that there is evidence of resilience in the face of such challenges. However, she noted that another potential risk to the economy is stronger consumption growth than expected, driven by wage gains across all income groups. This could have implications for inflation and economic activity.

The bridge collapse occurred on March 26th when a commercial Singapore-flagged cargo ship hit the Francis Scott Key Bridge. As a result, eight people from a construction crew fell into the water and the bridge collapsed. Ship traffic was suspended in the port of Baltimore, leading to significant disruptions in supply chains across various industries.

Overall, Kugler emphasized the importance of monitoring both positive and negative risks to economic growth. The Baltimore bridge collapse serves as an example of how unexpected events can disrupt supply chains and create vulnerabilities within economies.

In summary, Kugler’s comments highlight that while shipping networks are adapting to unexpected events such as bridge collapses, there are still potential risks to economic activity due to unforeseen circumstances like stronger consumption growth than expected. It’s important for policymakers and businesses alike to be aware of these vulnerabilities and take steps to mitigate them where possible.

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