Buried In The Fed's Financial Stability Report, A Potential Risk To Investors
A story that did not make front page headlines this past week may pose a greater risk to investors than is widely understood. Here's an early warning about a potential risk to mutual fund investors.
The risk was identified in the Federal Reserve Board's Financial Stability Report, released on May 6th, and discussed in detail in a speech delivered on Tuesday by Federal Reserve chairman, Jerome Powell.
The Financial Stability Report is a new annual report that was first published by the Fed in 2018. It was initiated by the Fed to monitor risk to the nation's financial system after the debt crisis of 2008 and The Great Recession. Overall, the Fed concluded that there are not glaring risks on the horizon that could lead to the collapse of the financial system. This is why the report was covered on page B3 of The New York Times on May 7th and The Wall Street Journal covered Mr. Powell's speech on Tuesday on page A2 instead of page A1.
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