Article via https://www.federalreserve.gov
My remarks will be U.S. focused, fully understanding that other countries monitor financial stability similarly and that the health of the U.S. economy and financial system has an impact on other countries, and vice versa.
A stable financial system is resilient even in the face of sharp downturns or stress events.
The economic activities of households and businesses depend on the strength of financial institutions’ balance sheets, as households and businesses obtain funding through the financial sector.
Similarly, the health of the financial sector hinges on the strength of the balance sheets of households, businesses, and financial institutions, as financial institutions’ assets are the liabilities of these sectors.
The U.S. Financial System and Economic OutlookU.S. financial markets and institutions remain resilient even though financial stability risks and vulnerabilities in the U.S. financial system have increased since the recent stress events.