The FED drew attention to risks for financial stability

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Lerato Khumalo

The FED has published the April issue of the Financial Stability Report, which includes assessments on the current situation in the American financial system.

In the report, the results of the survey on the risks of the US financial stability were shared, the concerns about the changes in trade policy were at the beginning of the list, it was followed by the policy uncertainties and the sustainability of the US debt.

“Most of the respondents see tariffs as the main risk, while some of the participants said that the local economy can survive the increasing tariffs for imported goods with a modest disruption.” The expression was used.

“Survey participants, a climbing trade war potential can lead to more serious consequences,” FED’s report said in his report. His opinion took place.

Apart from trade, policy uncertainty is also seen as an important risk to financial stability in the report, the government’s expenditure priorities and changes in the scope of the US international engagement was included.

The report stated that the US debt, permanent inflation and monetary tightening, risky asset/valuation correction, the functioning of the bond market, recession, banking sector stress, geopolitical risks, output of foreigners from US assets, special loan stress, non -bank financial institution stress, the value of US dollar and the other risks.