Federal Reserve Financial Stability Report: Global trade war and policy uncertainty are the biggest risks to financial stability

On April 26, the latest Financial Stability Report released by the Federal Reserve on Friday showed that rising global trade risks, overall policy uncertainty, and the sustainability of U.S. debt top the list of potential risks to the U.S. financial system. This is the first half-yearly survey of financial risks by the Federal Reserve since Trump's potential return to the White House. 73% of respondents indicated that global trade risks are their most significant concern, which is more than double the proportion in the November report. Half of the respondents believe that overall policy uncertainty is the most worrying issue, a percentage that has increased compared to the same period last year. The survey also found that issues related to recent market volatility received more attention, with 27% of respondents concerned about the functioning of the U.S. Treasury market, up from 17% in the fall. Foreign divestment from U.S. assets and the value of the dollar have also risen on the list of concerns. (Jinshi)