For example, investors or portfolio managers dissatisfied with low returns may “reach for yield” by taking on more credit risk, duration risk, or leverage.
The Federal Reserve is working to address financial stability concerns through increased  BIS central bankers’ speeches  3  monitoring, a more systemic approach to supervising financial firms, and the ongoing implementation of reforms to make the financial system more resilient. Recognizing the drawbacks of persistently low rates, the FOMC actively seeks economic conditions consistent with sustainably higher interest rates.