The report is here:
As you’d expect, its a chunky document (researchers and analysts at the Fed gotta research and analyse, right?). From the ‘overview’ a bit of a summary:
- Since the November 2021 Financial Stability Report, uncertainty about the economic outlook has increased. The Russian invasion of Ukraine has caused tremendous human and economic hardship, and the implications for the U.S. and global economies are highly uncertain. In the near term, the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity. After deteriorating early in the period because of the emergence and spread of the highly contagious Omicron variant, the pandemic outlook has improved but remains uncertain. Finally, inflation has been higher and more persistent than expected, even before the invasion of Ukraine, and uncertainty over the inflation outlook poses risks to financial conditions and economic activity.
News wires have various headline items, this is a good one and nails current concerns:
- Fed warns of ‘negative feedback loop’ as market liquidity deteriorates