Fed Financial Stability Report: Asset prices may be vulnerable if risk appetite falls

The Federal Reserve has stated that asset prices may be vulnerable if risk appetite falls in a report that summarizes the Fed's board’s framework for assessing the resilience of the US financial system and presents the Board’s current assessment.

Full report, May 2021

Markets are meanwhile fixated on the US data and tomorrow's Nonfarm Payrolls report will be the focus for markets in the session's ahead.

So far, however, the central bank's Chair, Jerome Powell, has argued the labour market is far short of where it needs to be to start talking of tapering asset purchases.