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Fed Flags Crypto Assets for First Time in Financial Risk Review

  • Says surge in their prices reflects increased risk-taking
  • Comment follows Powell meetings with crypto enthusiasts

The Federal Reserve singled out a surge in crypto asset prices for the first time in its overall assessment of the stability of the financial system, saying the rise reflected increased risk-taking by investors.

The brief comment, contained in the Fed’s semi-annual Monetary Policy Report to Congress released on Friday, is the latest sign that policy makers are paying more attention to what used to be a tiny sliver of the financial system.