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Fed, Highlighting Asset Bubble Dangers, Red Flags Rising Commercial Real Estate Prices

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A report just released by the Federal Reserve warns that soaring commercial real estate prices across the country could harm financial markets, according to the Wall Street Journal.

The warning came from the Fedā€™s first-everĀ financial stability report, which cited ā€œelevated asset prices, historically high debt owed by U.S. businesses and rising issuances of risky debtā€ as factors posing the biggest problems for the countryā€™s financial system. The report also pointed to asset bubbles, and not inflation, as the impetus for the past two recessions.

Fed Chairman Jerome PowellĀ spoke about the subject Ā at The Economic Club of New York on November 28th.

 

Source: The Real Deal

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