The U.S. Federal Reserve has released its 71-page annual “Financial Stability Report: 2021” on May 6; and to see the degree to which the Fed’s board of governors are worried about the approach of a financial crash centered in corporate stock and bond markets, listen to the release statement by the deputy chair of the Fed, economist Lael Brainard.
Significantly, Brainard points to the Fed’s concern to the still-resounding failure and liquidation of the Archegos hedge fund, which involved liquidation of some $50 billion in stock values on international exchanges and has hit major banks with somewhere between $10 billion and $100 billion in losses.
