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Authorized for public release by the FOMC Secretariat on 08/12/2016

THE

FEDERAL RESERVE SYSTEM


Date:

October 28, 2010

To:

Federal Open Market Committee

From:

William B. English, Brian Sack, Nathan Sheets, Dave Stockton

Subject: Financial Stability Background Memos

In response to the Committee’s request for ongoing analysis of financial stability
issues, we are attaching updates of two memos that have been distributed ahead of recent
FOMC meetings. The first memo presents measures of asset valuations across a number
of markets as well as other indicators of vulnerability to abrupt declines in asset prices.
The second memo presents readings on the degree of leverage in the financial sector.

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