The Federal Reserve Bank released its Financial stability report on Monday, in which it cautioned that the "uncertainty over the inflation outlook poses risks to financial conditions and economic activity."
The report stated that "inflation has been higher and more persistent than expected, even before the invasion of Ukraine." Nevertheless, Fed said that "in the near term, the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity."
Fed Board of Governors member Lael Brainard asserted that the report "underscores the importance of our ongoing work to identify and closely monitor risks to the financial system and to ensure the financial system remains resilient."
