The Fed noted a dramatic increase in the price of cryptocurrencies in its overall assessment of the stability of the financial system.

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The bank’s semi-annual monetary policy report, “the rise in prices of various cryptoassets” reveals that it reflects the increasing risk appetite of investors. While Fed officials have discussed cryptocurrencies before, the institution itself has rarely used the asset class as a benchmark to consider broader market conditions.

These statements suggest that the Fed is taking a closer look at cryptocurrencies. Senior executives met with key figures from recent months as they prepare to address questions such as how to proceed with a digital dollar project.

However, there was no fundamental change. The 69-page report declined to provide further details on crypto assets, their resilience, prospects or their impact on monetary policy. Expressions are squeezed between house prices and treasury returns. “risky assets” met in a broader section on price. However, the chapter ended with the following statements:

“If investor risk appetite declines, interest rates rise unexpectedly, or the recovery stalls, there could be significant declines in asset prices.”