Fed Report Flags Inflation Worries and Risks of Bank Losses Amid Market Volatility

Fed report raises concerns about persistent inflation risks and potential for large losses in US office market

Comes after some bank failures earlier this year led to wild trading in bank stocks

Report says deposit flows have since stabilized but some banks still face funding pressures

Contacts signal increasing worries about inflation leading to more restrictive policy

Focuses on 4 risk areas asset valuations, borrowing, financial sector leverage, and funding risks