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Elevated Inflation Presents Risk to U.S. Economy, Fed Report Finds
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WASHINGTON—Elevated and persistent inflation is among the greatest near-term risks to the U.S. economy and financial system, the Federal Reserve said, while also warning about rising friction in trading of U.S. government debt.
Fed Vice Chairwoman Lael Brainard said Friday there is a risk that an unexpected shock could amplify existing vulnerabilities in the financial system, in a statement accompanying the release of the central bank’s latest report on financial stability.
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