‘Significant' financial vulnerabilities amid coronavirus pandemic, Fed warns

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The U.S. Federal Reserve warned Friday that the financial sector faces “significant” vulnerabilities due to the coronavirus pandemic, as businesses and households grapple with fragile finances for the foreseeable future.

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In its latest report on financial stability issues, the Fed said the global pandemic imposed sweeping risks. While policy actions from the Fed and others have helped bolster the economy, and the banking system has withstood the initial downturn, the report warned of major risks if the pandemic proves lengthy or more severe.

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“The COVID-19 outbreak poses severe risks to businesses of all sizes and millions of households,” the central bank said.

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