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Fed warns about potential for ‘significant declines’ in asset prices as valuations climb



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People walk past the U.S. Federal Reserve building in Washington D.C., the United States, May 21, 2020.Ting Shen | Xinhua via Getty ImagesRising asset prices in the stock market and elsewhere are posing increasing threats to the financial system, the Federal Reserve warned in a report Thursday.In its semiannual Financial Stability Report, the central bank said that while the system overall has remained largely stable even through the Covid-19 pandemic, future dangers are rising, in particular should the aggressive run on stocks tail off.Investors have snapped up equities, corporate bonds and cryptocurrencies. They’ve poured billions into blank-check companies …

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