Chicago Federal Reserve - 2007 Annual Report

The possibility of continued market difficulties cannot be ruled out, Charles Evans, the president of the Chicago Federal Reserve, said in his introduction to the institution's 2007 annual report.

"We cannot be sure how long it will take for financial intermediaries to complete the process of re-evaluating the risks in their portfolios and restructuring their balance sheets accordingly," Evans said. "Further mortgage defaults due to declines in house prices and the fact that many subprime

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