Image Source: PexelsHere is a brief summary of what is of concern to domestic and international policymakers, academics, community groups, and others. We might call these “known risks.”Persistent inflation and monetary tightening
Persistent or reaccelerating inflationary pressures
Resilient economic outlook leading to further monetary policy tightening
Volatile market conditions
Entrenched expectations of higher inflation leading to higher realized inflation leading to even more restrictive monetary policy
Induces and even exacerbates recession
Commercial real estate
Potential trigger for systemic stress
Higher interest rates
Declining property prices
Structural shifts in demand for office space may prompt large realized losses
Small and regional domestic bank vulnerability
Tighter bank lending conditions
Reemergence of banking-sector stress
Renewed deposit outflows
Uninsured deposits
Losses on CRE exposures
Market liquidity strains and volatility
Vulnerabilities among highly levered NBFIs
Weakness in the Chinese economy and financial sector
Capital flight
Stronger U.S. dollar
Downward pressure on Chinese assets and other Asian markets
Alongside weakness in Europe, increased likelihood of a global recession
Increased foreign exchange market volatility
Implementation of capital controls
Fiscal debt sustainability
Treasury market volatility
Treasury market liquidity strain
Higher long-term interest rates and bond term premia
Increases in sovereign bond issuance
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