3 Apr 2018
Fed's Brainard: Financial system are 'moderate
Fed's Brainard, (dove), has hit the wires saying that risks to the U.S. Financial system are 'moderate' though the Fed is monitoring effects of fiscal stimulus.
Fed's Brainard:
- Financial asset valuations stretched, cyclical pressures building.
- Asset prices may be particularly vulnerable to outside economic shock.
- Risks to U.S. Financial system 'moderate' though fed monitoring effects of fiscal stimulus.
- May need to raise banks capital buffer if cyclical pressures build, vulnerabilities grow.
- Fed monitoring 'extreme volatility' of cryptocurrencies; could raise investor-protection issues.