Fed Flags Crypto Assets for First Time in Financial Risk Review By Bloomberg – Investing.com

Fed Flags Crypto Assets for First Time in Financial Risk Review By Bloomberg – Investing.com

(Bloomberg) -- The Federal Reserve singled out a surge in crypto asset prices for the first time in its overall assessment of the stability of the financial system, saying the rise reflected increased risk-taking by investors.

The brief comment, contained in the Fed’s semi-annual Monetary Policy Report to Congress released on Friday, is the latest sign that policy makers are paying more attention to what used to be a tiny sliver of the financial system.

Fed Chair Jerome Powell met with the head of cryptocurrency exchange Coinbase Global Inc. on May 11 and crypto advocate Christopher Giancarlo a day later, according to the central banker’s monthly diary.