The Fed's Barr who' operated in a cautious ways is the Fed VIce Chair in charge of supervision and the top regulatory official, is speaking on risks.
- Paying careful attention to liqudity and interest rate risk
- Also watching cybersecurity risks
- Commercial real estate and housing also something wer are monitoring
- Paying attention to risks in China
- We are also concerned about risks in nonbank sector, including crypto.
- It would be useful for the Fed to provide guidance to banks to safely custody crypto
- Firms that operate outside regulatory perimeter can cause enourmous problems
- Banks have operate in a cautious way to date with regard to custody activity
He outlines the broad spectrum of the major risks. He might include Russia as well.
As the Fed raises rates at what has been an unprecedented accelerated pace, it can lead to cracks from the increased risks. Add to the risks other external factors like cyber, China, Russia... maybe Covid especially in China, and the moving target can be daunting and overwhelming. That is the tightrope the Fed is walking on.
/inflation
