Fed Survey: Debt and Trade Wars Overtake Inflation as Key Risks

A Federal Reserve survey indicates that financial professionals have shifted their concerns from inflation to rising U.S. debt, potential recession, and global trade risks as major threats to financial stability. The survey highlights worries about U.S. fiscal debt sustainability, potential economic weakening, and the impact of trade wars. Despite recent Fed rate cuts, bond market behavior reflects these concerns, with rising Treasury yields and increased interest rate volatility. Previously, inflation was the top risk, but it has now fallen in priority.