Fed's Cook: Expectations of near-term policy rates do not appear to be driving long end

<ul><li>Residential and commercial property prices remain above levels historically associated with fundamentals</li><li>If commercial mortgage delinquency rates force sales, committal real estate prices 'could decline sharply'</li><li>Business borrowing is at high levels, but measures of debt servicing capacity remain strong overall due to profits and limited impact of high rates so far</li><li>In terms of debt, household sector looks quite resilient, though there are emerging signs of stress for those with weak credit</li><li>Vulnerabilities among non-banks could amplify stress of tightened financial conditions and slowing economy</li><li>Fed cannot anticipate all risks but can build resilience to shocks; particularly important to enhance resilience of large banks</li></ul><p>She's flagging some risks in real estate here but nothing the market doesn't already know about.</p>

This article was written by Adam Button at www.forexlive.com.