Fed: Next year we will face financial stability risk

Baku. 28 December. REPORT.AZ/ The risks of financial stability due to low discount rates should be closely monitored in 2018.

Report informs citing the Bloomberg, president of the Federal Reserve Bank of Boston Eric Rosengren said.

"In the event of a major negative shock, I am worried that in case when monetary policy can’t respond dangerous behaviors such as high return from investment is possible”, Rosengren said.

Rosengren noted that "geopolitical risks" were more severe than in previous years. He pointed out that the Fed is in a transition period: "We will see 2018 differently with the new chair".