The Fed issued a warning on the continued rise in the price of risky assets, saying that if the economic situation deteriorates, risky assets are more susceptible to a dangerous price collapse. "If investor risk sentiment deteriorates, progress in containing the virus is disappointing, or economic recovery stagnates, asset prices are prone to sharp declines," the Federal Reserve said in its twice-a-year Financial Stability Report released on Monday.

Fed Vice Chairman Richard Clarida said that the "necessary conditions" for the Fed to raise its benchmark lending rate from near zero may be reached by the end of next year. Clarida will attend the Brookings Institution’s monetary policy seminar in Washington on Monday. In his prepared speech, he said, "Although we are obviously far from considering raising interest rates, I believe that the three necessary conditions for raising the target range of the federal funds rate will be met by the end of 2022." He was referring to Labor market and inflation conditions set by the Fed for the first rate hike.

According to the latest survey by the Federal Reserve Bank of New York, after months of soaring prices, US consumer inflation expectations have risen to a record high. According to the monthly consumer expectations survey released on Monday, households’ expectations for inflation in the coming year rose to 5.7% in October from 5.3% in the previous month. The median inflation expectations for the next three years have remained stable at 4.2%. Both figures are the highest since the survey began in 2013.

The stock god Warren Buffett continues to sell stocks, implying that he is wary of the stock market that continues to soar. Buffett's Berkshire has sold stocks for the fourth consecutive quarter, the longest selling period since the data was collected in 2008. The amount of stock sold was approximately US$2 billion higher than the amount purchased, and the cash reserves reached a record US$149.2 billion. The sell-off shows that at a time when the U.S. stock market is at a historical high, it is difficult for Buffett to find “bargains”. The company also did not conduct large-scale acquisitions. The 91-year-old Buffett and his investment deputies not only faced sky-high valuations of assets, but also encountered competition from special purpose acquisition companies (SPAC).

The real yield on British government bonds fell to a record low. After the Bank of England unexpectedly left interest rates unchanged last week, investors sought protection in inflation-linked bonds. The UK 10-year inflation-linked bond yield fell by 3 basis points to -3.19%, breaking the previous low set in December 2020. The yield on the 30-year inflation-linked bond hit a record low last Friday. Such bonds allow investors to lock in returns without being affected by inflation, and demand is particularly high due to concerns about the price outlook. The UK inflation rate reached 3.1%, close to the highest level in the past 10 years, and well above the Bank of England’s 2% target.

The total market value of the cryptocurrency market has exceeded 3 trillion US dollars. According to CoinGecko's price, as of 7:38 London time, the total market value of the cryptocurrency market reached $3.01 trillion. The world's third and fourth largest cryptocurrencies, Binance Coin and Solana, have risen more than 20% in the past seven days; the seven largest cryptocurrencies have all increased in the past week. Bitcoin rose 5.5% to $66,339 on Monday. Ether rose 3% to a new high of US$4,768.

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