Fed Flags Elevated Asset Prices, High Debt as U.S. Financial Risks

The Wall Street Journal Finance 3 weeks ago

WASHINGTON— The Federal Reserve identified elevated asset prices and historically high debt owed by U.S. businesses as top vulnerabilities facing the U.S. financial system, according to the latest copy of the central bank’s financial stability report.

The Fed cited potential risks tied to non financial corporate borrowing, particularly leveraged loans—a $1.1 trillion market that the Fed warned is growing quickly despite consistently “weak” credit standards.

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