BlackRock Says Markets Discount the Scope of U.S.-China Tension

The video discusses the increasing geopolitical tensions between the US and China, highlighting the market's underestimation of these risks. It suggests that the situation should be viewed as a full-spectrum strategic competition rather than a trade war. The potential US response to Chinese actions is not fully priced into sensitive assets like Asian FX and Chinese ADRs. The Federal Reserve's support has been crucial, but markets may be complacent about ongoing risks, including COVID and macroeconomic factors.

In what ways has the Federal Reserve influenced market stability?

What does the text suggest about the market's current perception of geopolitical risks?