Baltimore bridge collapse could pose risks for US economy in 2024 - Federal Reserve

WASHINGTON - The collapse of a major bridge in Baltimore could pose some additional risks for the US economy due to the impact on shipping networks that appear to be adapting following the incident, US Federal Reserve Board Governor Adriana Kugler said in her remarks at Washington University in St. Louis.

"I am attentive to risks-both upside risks to my inflation outlook and downside risks to the outlook for economic activity. For upside risks, global developments such as the wars in Europe and the Middle East could spark an increase in commodity prices or further disruptions to shipping networks.

"The tragic recent bridge collapse in Baltimore and effects on the Port of Baltimore could also pose some risk, though it appears that shipping networks are adapting," Kugler said on Wednesday.

Another risk, according to Kugler, is that consumption growth could turn out to be stronger than expected mainly because of the wage gains across all income groups.

In the early hours of March 26, a commercial Singapore-flagged cargo ship hit the Francis Scott Key Bridge in Baltimore soon after it departed the port for Sri Lanka's Colombo.

The bridge collapsed, sending at least eight people from a construction crew working on the bridge into the water.

Ship traffic in the port of Baltimore was suspended until further notice following the bridge's collapse causing major supply chain disruptions. - BERNAMA