U.S. Treasury Unit Warns Clearinghouses Could Spread Risk
- Financial stability threat 'edged higher' but still moderate
- Research arm says opinion unchanged by Fed December rate hike
This article is for subscribers only.
Clearinghouses used for derivatives trades can be vulnerable and potentially spread risks through the financial system, according to a U.S. Treasury report.
The Treasury’s Office of Financial Research said Wednesday that threats to stability have increased slightly in the past year. Its assessment of risks in the financial system, however, hasn’t been affected by the Federal Reserve’s decision to raise interest rates in December. The Fed’s monetary policy makers decided Wednesday to leave rates unchanged following a two-day meeting in Washington.