Federal Reserve Financial Stability Report: Global Trade War and Policy Uncertainty Pose the Greatest Risk to Financial Stability

BlockBeats News, April 26th. The latest Financial Stability Report released by the Federal Reserve on Friday revealed that escalating global trade risks, overall policy uncertainty, and the sustainability of U.S. debt topped the list of potential risks to the U.S. financial system. This is the first time the Federal Reserve has conducted a semi-annual survey of financial risks since Trump returned to the White House. 73% of respondents indicated that global trade risks were their top concern, more than twice the proportion reported in the November survey. Half of the respondents believed that overall policy uncertainty was the most worrisome issue, a slight increase from the same period last year. The survey also found that issues related to recent market turmoil received more attention, with 27% of respondents expressing concerns about the functioning of the U.S. Treasury market, up from 17% in the fall of last year. Foreign divestment from U.S. assets and the value of the U.S. dollar also saw an increase in mentions on the worry list. (Jinshi)