The Federal Reserve calls on shares and real estate “risky investments” after reducing encryption

The federal reserve called on risky real estate shares and investments on Friday, which brought down the warning just one day after reducing its grip on the coding rules.

The financial stability report, issued by the Federal Reserve, said that asset prices are still “noticeable” although some markets have achieved successes earlier this month.

According to As for the report, “even after the recent declines in stock prices, the prices have remained high for analyst’s profit expectations, which are slowly modified than market prices.” The report also clarified that the treasury revenues in all entitlement remained near the highest levels that anyone has seen since 2008.

The Federal Reserve also indicated the benefit of the market as a large issue and said that the financing risk is still serious. The report, which covers the conditions of the market until April 11, said that the financing markets remained strong through coarse spots in early April, but this does not mean that everything was fine.

The central bank was keen to indicate that fair value losses on the fixed -price assets are still “large” for some banks and that these losses were very sensitive to changes in interest rates.

The Federal Reserve highlights the prices of assets, debts, and benefit from troubles

The Financial Stability Report was cut off on the extent of the appearance of bad things in four large areas. Starting with the assets of the assets, the Federal Reserve said that the shares remained exorbitant compared to profits even after the sale of April.

The treasury returns remained stubbornly, and spread among the bonds of companies and the treasury moderate. The liquidity problems that were built during the end of March and were written in April, but trading is still working.

On the real estate side, the prices of homes remain high, and the percentage of home prices to rents near record peaks. The indexing real estate indexes showed some of the settlement signs, but the Federal Reserve warned that re -financing may cause problems soon.

Religion did not seem much better. Business and home debts decreased as a share of GDP to the lowest point in twenty years. But the leverage remained high, and private credit deals continued to grow.

Family debts seemed tame compared to modern history. Most of the mortgages are a fixed rate and have low interest rates, and the total debt service rates are slightly better by the epidemic. However, the Federal Reserve has reported that credit cards and expressions of car loan have risen, especially for people with non -emergency credit and less income.

When it comes to benefit, the Federal Reserve said that banks still look sound, with capital levels higher than the minimum regulatory. However, the losses on the assets with a fixed rate continued to hit some banks severely. Some banks, insurance companies, and supply shops continued in commercial real estate as well.

The Federal Reserve said that bank lending for non -banks is continuing to climb, thanks to this to better track methods. He sat the leverage of the hedge fund near the highest levels of the past ten years and was often packed in larger money. Some of the investors who were summoned began getting rid of positions during April fluctuations to cover margin calls, with the hedge boxes in relative value deals of the most difficult blow.

Federal Federal Flags for Continuing Risk Fund

The Federal Reserve said that the risk of financing fell to moderate levels during the past year, but it did not disappear. Operating funds similar to the historical brokers remain a long -term threat. The banks reduced their dependence on unintended sediments since their highest levels in 2022 and 2023.

The main money market funds looked better, but other cash vehicles bearing the same risk continued to grow. Bond and loan boxes, which maintain the assets that can be switched quickly under pressure, have witnessed greater flows than usual during early April.

The Financial Stability Report also said that the risks of global trade, debt concerns and inflation are getting worse. He added, “A number of respondents also pointed to the ongoing inflation and corrections in the asset markets as prominent risks.” Most of the comments were collected before April 2.

Just one day before the bombing of stocks and real estate, the Federal Reserve returned to years of encryption restrictions. The previous rules that told the banks to obtain prior approval before doing anything in the encryption. On Thursday’s announcement, the Federal Reserve said, “These measures guarantee that the expectations of the Board of Directors remain compatible with advanced risks and support for innovation in the banking system.”

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