The Federal Reserve's latest Financial Stability Report points out that the intensifying global trade tensions, increasing policy uncertainty, and concerns about the sustainability of U.S. debt are the biggest risks to the stability of the U.S. financial system.
This report is the first six-month risk survey since President Donald Trump returned to the White House. The report shows that market participants' concerns have surged, with 73% of respondents citing global trade risks as their primary concern, more than double the proportion from the last survey conducted in November of last year.
Policy uncertainty also ranks high among financial concerns, with half of the respondents indicating that uncertain or changing economic policies are their main worry, reflecting their growing anxiety about potential regulatory and fiscal changes under the new government. This percentage has significantly increased compared to the same period last year.