Fed: Inflation, Ukraine biggest threats to financial system

By KEN SWEET
AP Business Writer

NEW YORK (AP) — The Federal Reserve no longer views the coronavirus pandemic as the biggest threat to the global financial system. Instead, the central bank is pointing to Russia’s war in Ukraine and surging as inflation the chief perils. The observations came Monday in the Fed’s semiannual Financial Stability Report focusing on trends in trading and investing as well as broad economic issues. The Fed says that economic uncertainty has increased since its previous report, with Ukraine war being a big part of the deterioration. Inflation was also a big part of the report, as prices jump at rates not seen since the early 1980s.