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Federal Reserve releases Financial Stability Report assessing US financial system

Crypto Briefing
The Federal Reserve's latest report highlights systemic pressures, balance sheet reduction plans, and potential recession scenarios while omitting digital asset risks.

Summary

The Federal Reserve has published its semi-annual Financial Stability Report, identifying elevated risks to the U.S. financial system stemming from global instability and a $6.5 trillion balance sheet. Governor Stephen Miran proposed shrinking the balance sheet by $1 to $2 trillion to mitigate future losses and maintain fiscal flexibility. While stress tests model severe 2026 recession scenarios, the report notably excludes an assessment of cryptocurrency markets, suggesting they are not yet viewed as a primary systemic threat by the central bank.

(Source:Crypto Briefing)