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Financial Stability Report
Statement by Vice Chair Lael Brainard
The volatility over the past six months once again demonstrates the importance of our efforts in
the Financial Stability Report to identify, analyze, and closely monitor financial system
vulnerabilities. Over the period, household and business indebtedness has remained generally
stable, and on aggregate households and businesses have maintained the ability to cover debt
servicing, despite rising interest rates.
Today's environment of rapid synchronous global monetary policy tightening, elevated inflation,
and high uncertainty associated with the pandemic and the war raises the risk that a shock
could lead to the amplification of vulnerabilities, for instance due to strained liquidity in core
financial markets or hidden leverage.
It's important to remain attentive to the risks raised in the report and to work with domestic and
international regulators to support the resilience of the financial system.

Last Update: November 04, 2022