Reuters reports that St. Louis Federal Reserve president James Bullard told the Financial Times that a wave of "substantial bankruptcies" triggered by the coronavirus pandemic could lead to a financial crisis.

"Without more granular risk management on the part of the health policy, we could get a wave of substantial bankruptcies and (that) could feed into a financial crisis," he told the newspaper in an interview on Wednesday.

"I think it's probably prudent to keep our lending facilities in place for now, even though its true that liquidity has improved dramatically in financial markets."