Federal Reserve Governor Lisa Cook said on Wednesday that geopolitical tensions could be destabilizing to commodity markets and to the system of credit, per Reuters.

Key quotes

"We are being vigilant in monitoring these vulnerabilities."

"Persistent inflationary pressures, unexpected policy rate increases abroad are among risks to global financial system."

"Further slowdown in China could worsen financial stresses, with possible international spillovers."

"We must remain vigilant to potential shocks that could exacerbate global financial system vulnerabilities."

Market reaction

These comments failed to trigger a noticeable market reaction. At the time of press, the US Dollar Index was up 0.3% on the day at 105.80.