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George Ma
May 17 09:07

Fed does not rule out a new collapse in financial markets

A collapse in financial markets may happen again, according to the U.S. Federal Reserve's Financial Stability Report. Asset prices remain vulnerable amid Coronavirus COVID-19 pandemic.
"Uncertainty is still high and markets remain volatile compared to historical norms, which suggests the possibility of further price decline if the situation develops worse than expected," the document said.
FRS noted that the real estate market, including commercial real estate, needs more time to respond to changes in the economic situation. This industry may find itself under serious pressure.
Earlier, the head of the Federal Reserve Jerome Powell said that the U.S. economy may experience "prolonged exposure" from the negative effects of the coronavirus pandemic. According to him, "the scale and pace of the economic downturn has been unprecedented since the Second World War".