Macro & Markets: Diverging Economies Are Fueling the US Dollar

This report presents the Federal eserve oard’s current assessment of the stability of the U.S. financial system. y publishing this report, the oard intends to promote public understanding by increasing transparency around, and creating accountability for, the Federal eserve’s views on this topic. Financial stability supports the objectives assigned to the Federal eserve, including full employment and stable prices, a safe and sound banking system, and an efficient payments system. A financial system is considered stable when banks, other lenders, and financial markets are able to provide households, communities, and businesses with the financing they need to invest, grow, and participate in a wellfunctioning economy—and can do so even when hit by adverse events, or “shocks.” post: U.S. GOVERNMENT FISCAL SUSTAINABILITY TOPS LIST OF SALIENT FINANCIAL SYSTEM RISKS CITED IN FED SURVEY OF MARKET CONTACTS FOR SEMI-ANNUAL FINANCIAL STABILITY REPORT post: PERSISTENT INFLATION DROPS TO NO. 5 ON RISKS LIST FROM NO. 1 IN PRIOR SURVEY, NOW TIED WITH GLOBAL TRADE RISKS: FED SURVEY post: MIDDLE EAST TENSIONS, POLICY UNCERTAINTY, U.S. RECESSION ALSO AMONG TOP-CITED POTENTIAL SHOCKS: FED SURVEY post: STABLECOIN ASSETS ROSE TO NEAR-RECORD $170 BLN BY EARLY NOVEMBER, CAN SCALE RAPIDLY, REMAIN VULNERABLE TO RUNS: FED REPORT

Discussions of artificial intelligence (AI) inevitably center on two main points: risks and benefits.1 Both of these can be frustratingly vague and amorphous. Proponents of AI ...