Fed survey finds inflation fading as a risk next to debt, trade wars
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The Federal Reserve survey indicates that financial professionals are more concerned about rising US debt, potential recession, and global trade risks than inflation following Donald Trump's election on Nov 5, 2024. The survey highlights US fiscal debt sustainability as the top risk, with increased Treasury issuance potentially crowding out private investment. Bond market behavior shows rising yields on 10-year Treasury notes despite recent Fed rate cuts. Concerns about global trade barriers and their impact on inflation and economic activity have also increased. Inflation, previously the top risk, has fallen to sixth place in the current survey. The survey was conducted from August to October 2024 among financial sector participants. Trump's anticipated tax cuts and tariffs may exacerbate inflation and federal deficits. The financial system appears solid but faces pressures, with rising delinquency on some loans and concerns about elevated asset values and stablecoins.
#FederalReserve #Inflation #Debt #TradeWars #Trump #FinancialStability #BondMarket #Treasury #Economy #Survey
https://theedgemalaysia.com/node/735148
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