Feds Semi-annual survey: Risks to global trade are the most frequently cited risk

• 🔴 Risks to global trade are the most frequently cited risk to the U.S. financial system, according to new Federal Reserve survey

• 🔴 Fed says growing stablecoin sector remains subject to run risks

• 🔴 Fed says bank funding vulnerabilities in line with historical norms

• 🔴 Fed says funding markets were resilient through early April’s market volatility

• 🔴 Global trade risks, fiscal debt sustainability, and policy uncertainty top concerns of Fed survey respondents

• 🔴 Fed survey respondents also cite foreign divestment from U.S. assets, value of U.S. dollar, as other new potential shocks

• 🔴 Fed survey: Some respondents say ‘incremental tariffs’ may only cause modest disruption

• 🔴 Fed in latest Financial Stability Report says prices remain high relative to fundamentals even after April market turmoil

• 🔴 Fed says liquidity in Treasury and equity markets was low and worsened further in April, though market functioning remained orderly

• 🔴 Fed says Treasury markets continued to see orderly trading, markets continued to function amid recent volatility

• 🔴 Fed says commercial real estate prices showed some signs of stabilizing

• 🔴 Fed says banking system remained sound and resilient, but hedge fund leverage rose to historical highs, concentrated among largest funds

This article was written by Greg Michalowski at www.forexlive.com.