But soaring prices for energy and commodities are likely to hurt activity, especially in energy-intensive sectors. Corporate insolvencies have remained well below pre-pandemic levels. But some sectors have already seen an increase in expected default rates and might be at greater risk of insolvencies in the event of adverse economic surprises or a further tightening of financial conditions.
In an ongoing effort to understand the emerging risks related to agricultural lending, the Federal Reserve Bank of Kansas City facilitates a National Agricultural Credit meeting semiannually. In late March of this year, the Federal Reserve will be hosting this meeting in Washington, D.C. In April, the Board will meet with the Community Depository Institution Advisory Council.