Fed says war and inflation has replaced COVID as econ threat

The Federal Reserve no longer views the coronavirus pandemic as the biggest threat to the global financial system. Instead, the central bank now is pointing to Russia’s war in Ukraine and surging inflation as being the most problematic. In its semiannual Financial Stability Report, the Fed says economic uncertainty is on the rise since the start of the war and with inflation reaching its highest level in four decades. Higher mortgage rates could also hurt the housing industry.