The Fed could still kill off more zombie companies even after bankruptcies have spiked 54% since last year

• US bankruptcies soared 54% year-over-year in August.
• Societe Generale warned that more business failures could follow "beyond all fears."

• The Federal Reserve has hiked interest rates 11 times over the last 18 months, tightening financial conditions.

The Federal Reserve has embarked on one of the most aggressive monetary policy tightening campaigns ever, hiking interest rates 11 times over the last 18 months – and this high-rate environment and more expensive borrowing costs, according to Societe Generale, has sparked a wave of business failures that may continue to grow.