The Federal Reserve's Financial Stability Report: Global trade wars and policy uncertainty pose the greatest risks to financial stability

Rising global trade risks, overall policy uncertainty and the sustainability of US debt topped the list of latent risks to the US financial system, according to the Federal Reserve's latest financial stability report released on Friday. It is the first time the Fed has conducted a semi-annual survey of financial risks since Mr. Trump returned to the White House. Seventy-three per cent of respondents said global trade risks were their top concern, more than double the number reported in November. Half of those surveyed said overall policy uncertainty was the top concern, up from a year earlier. The survey also found that issues related to recent market turmoil have received more attention, with 27 per cent of respondents concerned about the functioning of the Treasury market, up from 17 per cent last autumn. Foreign divestments of U.S. assets and the value of the dollar also rose on the list of concerns.