Latest Fed survey: policy uncertainty and geopolitical risks top concerns

According to the Federal Reserve’s latest Financial Stability Survey, policy uncertainty, geopolitical risk and hedge-fund leverage reached new prominence among financial-system concerns. The survey noted AI-driven shocks for the first time and highlighted central-bank independence as a potential risk for global stability. 

The report suggests that despite strong macro data, structural vulnerabilities remain, which may influence risk-asset pricing and investor outlooks for coming quarters.