Fed Report Highlights Rising Global Trade Risks and Policy Uncertainty

According to BlockBeats, the latest financial stability report released by the Federal Reserve on Friday highlights increasing global trade risks, overall policy uncertainty, and the sustainability of U.S. debt as the top potential threats to the American financial system. This marks the first semi-annual survey on financial risks since U.S. President Donald Trump returned to office. The report reveals that 73% of respondents identified global trade risks as their primary concern, more than double the percentage reported in November. Additionally, half of the respondents expressed that overall policy uncertainty is a significant worry, showing an increase compared to the same period last year. The survey also indicates heightened attention to issues related to recent market volatility, with 27% of respondents expressing concern about the functioning of the U.S. Treasury market, up from 17% last fall. Concerns about foreign divestment from U.S. assets and the value of the dollar have also risen on the list of worries.