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Fed policy report warns on possible financial sector risks

From nasdaq.com

The Federal Reserve report released Friday flagged a range of what it deemed "notable" vulnerabilities in financial markets, while adding the stress that roiled the banking sector a year ago has faded considerably. The Fed also used the latest release of its periodic Monetary Policy Report to say that officials will not start moving their short-term interest rate target down until they gain greater confidence inflation is truly moving back to the 2% target. In the report, the central bank noted a number of ways in which borrowing levels, or leverage, were increasing risks in the financial sector. It also said stock ... (full story)

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