Fed warns of China debt risks

Federal Reserve

The Federal Reserve Board of Governors has expressed broad confidence in the soundness of the US financial system, but believes vulnerabilities in China pose a cross-border threat.

In its second Financial Stability Report of 2021, the Fed warned of risks from the highly leveraged Chinese economy, specifically citing the case of the debt-laden Evergrande real-estate development company.

Some sectors of the domestic economy also raised concerns, including money-market funds, life insurance and

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