0616 GMT - One of the more interesting items teased out from the Federal Reserve's minutes is that the central bank seems to think financial‑stability risks are building under the surface, LPL Financial's Jeffrey Roach says in a note. Asset valuations are high, credit spreads are tight and AI-related investment has created new pockets of risk--especially in private credit, leveraged firms and highly concentrated tech names. Meanwhile, hedge fund leverage and Treasury market vulnerabilities remain key concerns, the chief economist says. "Looking ahead, we should monitor potential spillovers from volatile global bond markets and FX," Roach adds. He doesn't expect the next Fed rate cut to come until June. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

February 19, 2026 01:16 ET (06:16 GMT)

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