The meeting minutes of the Federal Reserve show that participants are worried about the US Treasury market.

According to the minutes of the Federal Open Market Committee meeting on July 29-30, several participants commented on the vulnerability of the US Treasury market and expressed concerns about the intermediation capabilities of trading firms, the growing presence of hedge funds, and the vulnerability caused by low market depth. Regarding banks, some participants also pointed out that despite strong regulatory capital levels, some institutions are still vulnerable to rising long-term interest rates and related unrealized losses on bank assets. Some participants discussed foreign exchange swaps, noting that these products are "a major source of US dollar funding for foreign financial institutions to provide dollar loans to US and overseas clients," but also have vulnerabilities such as maturity mismatches and rollover risks. Many participants discussed the recent and future development of stablecoins, and their potential impact on the financial system. Participants noted that after the passage of the Stablecoin Act, the use of stablecoins may increase, and discussed how stablecoins could help improve the efficiency of the payment system. They also observed that stablecoins may increase demand for the assets they require. Participants expressed concerns that stablecoins could have broader impacts on banks, the financial system, and monetary policy implementation, and warrant close attention, including monitoring the various assets used to support stablecoins.