Federal Reserve Warns of Vulnerabilities in US Financial System

Federal Reserve Warns of Vulnerabilities in US Financial System

The Federal Reserve’s first ever “stability report” warned of a number of dangers to the entire US financial system that could exacerbate problems if the system as a whole sustains significant stress. The report, released Wednesday, illustrates a slew of vulnerabilities in the US financial system, including excessive asset valuations, historically high borrowing levels by US corporations and the increasing issuance of risky debt.

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