Report: "Brexit" move raises risks to U.S. financial stability
WASHINGTON - Britain's decision to quit the European Union has elevated the risks to U.S. financial stability, though they remain moderate, U.S. Treasury Department experts say.
The report issued Monday by Treasury's Office of Financial Research comes a day after global finance officials promised to protect the world economy from the shockwaves of Britain's "Brexit" referendum last month and to boost sluggish growth.
The vote, which surprised financial markets and was a "negative shock" to investor confidence, brings in months or years of uncertainty over British finance, trade and investment, the OFR report says. Because Britain's economy and financial system are so closely connected with the U.S. and the rest of Europe, distress in Britain could threaten U.S. financial stability, it warned.
"Brexit was a shock," OFR Director Richard Berner told reporters.