OFR: Inflation and monetary tightening may increase systemic risks

OFR, in its annual report to the Congress, noted that a new era has been entered in the COVID-19 epidemic in the USA.

In the report, it was stated that the most important vulnerability is inflation, and it was stated that inflation is a risk related to current bottlenecks in supply chains and increased labor and energy costs.

In the report, which stated that the risks to the financial stability of the USA in general remain in the middle range, “The financial system is much more resilient in early 2020 than it was at the start of the COVID-19 epidemic.” assessment was included.

In the report, it was pointed out that government support for households and businesses that were financially damaged by the epidemic led to a period of growth after last year’s recession, noting that the recovery in the first half of 2021 was strong, but its pace slowed down in the second half.

“Uncertainty remains due to various current and emerging vulnerabilities, including rising inflation, the future impact of COVID-19, and a tighter monetary policy,” the OFR’s report said. expression was used.

Emphasizing that cyber risks have also increased due to the increase in the costs caused by cyber attacks and the costs required to protect against them, it was noted that despite the vulnerabilities of climate change to the financial system, it is still difficult to identify, evaluate and predict the potential risk on the financial system.

Source: Dünya Gazetesi by www.dunya.com.

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