Leveraged markets not a financial stability risk – Powell
Powell examines state of highly leveraged markets with eye to financial stability
A governor of the Federal Reserve has said it is not the job of the central bank to stop people from losing – or making – money when it comes to leveraged financial markets, as long as the risk-taking does not pose a threat to financial stability.
Speaking in Chicago on January 7, Jerome Powell examined the effect of valuation pressures in markets where leverage is high, most notably the real estate market. "Valuations in commercial real estate are high in some markets. And in the non-financial
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