ICYMI – Fed’s FSR cites concerns on persistent inflation, and commercial real estate

The Federal Reserve released its October 2023 Financial Stability Report on Friday at 1600 US ET. I can’t say I endorse that timing.

Main points of concern from the report:

  • chance for persistent inflation to keep interest rates higher
  • potential losses in the commercial real estate market

Three-quarters of survey respondents cited those two issues as prominent near-term risks.

Also noted:

  • bank stability concerns (three large firms failed earlier in the year)
  • economic weakness in Chin
  • the war between Russia and Ukraine slipped to the 11th-most cited concern by respondents (the Fed noted that its survey of looming risks was closed in early October, before the Hamas terrorist attacks in Israel)

The Financial Stability Report is issued semi-annually. Its main purpose is to assess potential risks and vulnerabilities in the financial system, as well as to communicate the Fed’s efforts to promote financial stability.

Full text is here:

This article was written by Eamonn Sheridan at www.forexlive.com. Source