Federal Reserve Alert! Vice Chair Lael Brainard: 'the risk that a shock could lead to the amplification of vulnerabilities, for instance due to strained liquidity in core financial markets or hidden leverage.'

Source: https://www.federalreserve.gov/publications/brainard-statement-20221104.htm

Financial Stability Report (that she is referencing), their framework for assessing the resilience of the U.S. financial system and presents the Boardโ€™s current assessment. They see as vulnerabilities: Asset valuations, Borrowing by business and households, Leverage, and Funding Risks.

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