Financial Stability 2025: Are Hidden Market Vulnerabilities Signaling Risk for the Dollar?

The latest Financial Stability Report (April 2025 – November 2025 update) highlights that asset valuations remain elevated across equities, corporate bonds, and property markets. Following April’s market volatility, equity prices relative to earnings have climbed back near the top of historical ranges, while the equity premium—the reward investors demand for risk—remains well below average.