In the American financial market, the threat of higher inflation and a possible tighter monetary policy have replaced the corona pandemic as the biggest problem child, according to the Federal Reserve (Fed).

According to a survey of market participants published by the Fed, 70 percent of those questioned saw inflation and more restrictive central bank policies as their greatest risks for the next twelve to 18 months.

The half-yearly report of the Federal Reserve (Fed) also states that the willingness of investors in the United States to take risks is higher than it has been since the dot-com boom of 2001.

However, the framework conditions could change quickly if the pandemic worsens or the economic recovery falters.

The Fed sees a strong economic recovery.

"Despite the tragic human toll, the Delta variant has had limited impact on US financial markets," the report said.