The prolonged accumulation of expanding US current account deficits has been a source of unease because the financing of these deficits relies on the continuation of capital inflows from surplus emerging market economies and oil-producing countries [see chart on the left of slide 3].
Commodity price swings, especially in the oil markets, can also pose risks for financial stability through various channels both indirectly and directly. Indirect effects pass through macroeconomic channels as high and volatile oil price levels pose risks for economic growth and inflation with potential adverse effects on asset prices.