Federal Reserve Financial Stability Report: Global trade wars and policy uncertainty are the biggest risks to financial stability.

The latest financial stability report released by the Federal Reserve on Friday shows that global trade risks are rising, overall policy uncertainty, and the sustainability of US debt are the top potential risks to the US financial system. This is the first time the Federal Reserve has conducted a semi-annual survey of financial risks since Trump returned to the White House. 73% of respondents said that global trade risks are their biggest concern, more than twice the percentage in the November report. Half of the respondents believe that overall policy uncertainty is the most concerning issue, a higher percentage than the same period last year. The survey also found that more attention is being paid to issues related to recent market volatility, with 27% of respondents worried about the operation of the US Treasury market, up from 17% in the fall of last year. Foreign divestment of US assets and the value of the dollar are also rising concerns on the list.