Mumbai, April 28 -- According to a latest update from the US Federal Reserve, a slowdown in economic activity in the United States could have wide-ranging financial and economic effects and prompt further declines in asset prices. Adverse dynamics could be amplified if interest rates rose at the same time. In the near term, higher interest rates could raise consumer borrowing costs and strain household budgets, increasing the potential for delinquencies. Debt-servicing costs for governments and corporations would similarly increase, which could amplify existing vulnerabilities linked to high leverage and upcoming refinancing needs. Collectively, these factors could lead to fair value losses on fixed-rate securities among financial intermedi...