The Federal Reserve has categorized stocks and real estate as risky assets, emphasizing that high Treasury yields and significant corporate leverage are warning signs despite improving debt levels. The report indicates that both sectors are still vulnerable to market fluctuations.
Just one day prior, the Fed relaxed regulations on cryptocurrency for banks, which heightens the scrutiny around stock and real estate investments. The Financial Stability Report flags ongoing concerns regarding funding risks and inflation, suggesting market resilience may be short-lived.
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