Federal Reserve Financial Stability Report: Persistent inflation considered the most important financial stability risk

According to Mars Finance news, the financial stability report released by the Federal Reserve shows that continued inflation is regarded as the most important financial stability risk. In addition, 60% of respondents believe that "policy uncertainty," including escalating geopolitical tensions and the upcoming U.S. election, may pose risks to financial stability. Commercial real estate and banking stress risks were mentioned less frequently than in the fall 2023 survey. Nearly two-thirds of respondents cited policy uncertainty as a risk, significantly higher than in the October report. Cyberattacks and conflicts in the Middle East have been listed as risks, while non-bank institutions and the Russia-Ukraine conflict have disappeared from the risk list. Concerns about unprotected deposits and other factors continue to put financial pressure on some banks.