Fed: Sharp Interest Rate Spikes and Stablecoin Runs Risk to US Economy

-The United States Federal Reserve (Fed) has warned that a spike in interest rates and stablecoins could pose risks to the U.S. economy.

-The report contains the Feds assessment of the resiliency of the U.S. financial system, and how financial stability can be promoted.

-Two of the most notable highlights are the fact a sharp rise in interest rates risks the economy, and so do stablecoins.

-The U.S. economy, like many others in the world, is shedding value following the Fed raising interest rates by half a percentage point.

-An increase in interest rates has largely been the reason behind the market drop.

-The Fed also believes that stablecoins are prone to runs and that as the sector continues to grow rapidly it remains exposed to liquidity risks.

BIC fed usd funding.jpg.optimal Fed: Sharp Interest Rate Spikes and Stablecoin Runs Risk to US Economy
Fed: Sharp Interest Rate Spikes and Stablecoin Runs Risk to US Economy 2

Leave a Reply