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The Federal Reserve warned of a number of new risks to the US financial system—including market volatility due to Mime stocks and a potential spillover from China’s real estate troubles—in its semiannual financial stability. report good Released late Monday.

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Concerns over high inflation and tighter monetary policy have risen since the beginning of this year and are now the biggest concerns for investors, with nearly 70% of experts surveyed by the Fed marking it as the main risk to financial stability.

The second most common concern—with more than 50% of respondents—was over the vaccine-resistant Covid-19 variant derailing the economic recovery, though it fell slightly since May, the last time the Fed looked at its financial stability. The report was published.

At the same time, the Federal Reserve also flagged several new types of potential risks to the financial system that deserve attention and have recently emerged as top investor concerns, including increasing interest in “so-called meme stocks.”

The Fed noted that a large group of young retail investors, fueled by zero-cost brokerages and discussions on social media, are investing heavily in meme stocks and cryptocurrencies, a trend that could lead to stock market volatility in the future. can.

Another major risk—now the third biggest concern for investors according to the Fed—is China’s regulatory action, and particularly trouble with its real estate sector, which could cause a “spread” of US markets.

Property development giant China Evergrande is attempting to avoid defaulting on its debt this summer, causing widespread damage to Chinese real estate stocks and raising investor concerns about the world’s second-largest economy.

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