(ASSOCIATED PRESS) The Federal Reserve said Friday that Wall Street remains vulnerable to another shock if the global pandemic takes an “unexpected course” putting renewed strains on the economy and the country's financial system.
The central bank said the financial system came under severe pressure in March as the pandemic shut down much of the economy and sent the markets plummeting.
The Fed said its quick action helped alleviate many of the stresses but it cautioned that prices for stocks, bonds and other assets could fall further, depending on the course of the virus.
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“Asset prices remain vulnerable to significant price declines should the pandemic take an unexpected course, the economic fallout prove more adverse or financial system strains re-emerge,” the Fed said.