Fed's Fischer Warns Against Complacency Over Stability Risks
- Asset prices reflect higher risk appetite, Fed’s No. 2 says
- Higher leverage makes companies, households more vulnerable
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Federal Reserve Vice Chairman Stanley Fischer pointed to higher asset prices as well as increased vulnerabilities for both household and corporate borrowers in warning against complacency when gauging the safety of the global financial system.
“There is no doubt the soundness and resilience of our financial system has improved since the 2007-09 crisis,” Fischer said in the text of a speech Tuesday in Washington. “However, it would be foolish to think we have eliminated all risks.”