Fed’s Powell Says Cyber Threats a Bigger Danger to U.S. Economy Than 2008-Style Crisis

Federal Reserve Chairman Jerome Powell reiterated on Wednesday that cyber threats pose a bigger threat to the U.S. economy than the risk of another systemic breakdown in the financial system seen during the 2008 recession.

In an interview with David Rubenstein at the Economic Club of Washington D.C. on Wednesday, Powell said that “cyber is the new frontier” and financial institutions are devoting resources to thwart attacks.

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The comments echo remarks he made during a CBS’ “60 Minutes” interview that aired on Sunday night when Powell said that policymakers at the U.S. central bank believe cyberattacks on financial institutions that halt their ability to track payments could trigger a market collapse similar in magnitude to the global financial crisis.

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