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Global trade tensions and the possibility of a "difficult" Brexit pose risks to the US financial system, says the first report of the US Federal Reserve, entirely devoted to the financial stability of the world's largest economy. world. [19659002] The US umbrella of central banks summarizes both the strengths and weaknesses of the financial system
The report says the situation is now significantly better than before the 2008 financial crisis. Emphasis is also put on writing. that stock prices have risen sharply. The debt of companies is also historically high.
There are external shocks, such as a growing trade war between the United States and their major trading partners or a disorderly disruption between the United Kingdom and the European Union, so, according to experts, a firm correction of the market.
The Fed intends to submit such a report twice a year. Previously, this information was included in various reports. Fed Chairman Jerome Powell, who took office earlier this year, believes that transparency on this topic is very important.
"The outlook for the US economy is still solid"
Powell also spoke Wednesday. In a speech, he said the outlook for the US economy was still "solid".
The Fed chief also explained that interest rates in the United States were just below the neutral level. He also stated that it is only about a year or so later that the impact of the Fed's interest rate steps is clear
On the New York Stock Exchange, Powell's comments were warmly welcomed. Stock prices on Wall Street have clearly increased. It was immediately speculated that the Fed could, earlier than expected, pause in the gradual rise in interest rates.
Powell recently received criticism from US President Donald Trump. He thinks that the group of central banks raises interest rates too quickly.
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