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Fed warns about potential for ‘significant declines’ in asset prices as valuations climb

Rising asset prices are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.

admin by admin
May 7, 2021
in Investing
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Fed warns about potential for ‘significant declines’ in asset prices as valuations climb

Rising asset prices in the stock market and elsewhere are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.

In its semiannual Financial Stability Report, the central bank said that while the system overall has remained largely stable even through the Covid-19 pandemic, future dangers are rising, in particular should the aggressive run on stocks tail off.

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