The Federal Reserve (FED) Financial Stability Report: Global trade wars and policy uncertainty are the biggest risks to financial stability.

The latest financial stability report released by The Federal Reserve (FED) on Friday shows that global trade risks are on the rise, overall policy uncertainty is high, and the sustainability of U.S. debt tops the list of potential risks to the U.S. financial system. This is the first time The Federal Reserve (FED) has conducted its semiannual survey on financial risks since Trump returned to the White House. 73% of respondents indicated that global trade risks are their biggest concern, more than double the proportion in the November report. Half of the respondents believe that overall policy uncertainty is the most worrying issue, an increase compared to the same period last year. The survey also found that issues related to recent market turmoil have received more attention, with 27% of respondents worried about the functioning of the U.S. Treasury market, up from 17% last fall. Concerns about foreign divestment from U.S. assets and the value of the dollar have also risen on the worry list.