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US Fed report flags potential risks posed by inflation, higher interest rates

( November 7, 2025, 21:28 GMT | Official Statement) -- MLex Summary: Risks for both borrowers and lenders could be created by a further increase in term premiums leading to higher-than-expected long-term interest rates, particularly if accompanied by persistent inflation, the US Federal Reserve's semiannual report on financial stability said. Higher interest rates and inflation could cause declines in asset prices. In the near term, asset price declines as well as higher interest rates, as well as weaker balance sheets, could raise consumer borrowing costs, increasing the potential for delinquencies, the report said.See attached file....

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