Fed’s Brainard warns of ‘financial imbalances’
Fed board member points to risks in high asset prices and business debt
The US economy is showing “some signs of financial imbalances”, Lael Brainard said in a speech on April 19.
“Our scan of financial vulnerabilities suggests elevated risks in two areas: asset valuations and business leverage,” the member of the Federal Reserve’s board of governors said.
Corporate financial conditions remain loose, and bond yields are low by historical standards, Brainard pointed out.
“Spreads on leveraged loans and securitised products backed by those loans remain narrow,” she
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