The Federal Reserve’s rate increases do not appear to have cooled financial markets and may not be having much impact on the US economy, according to the latest report from the Bank for International Settlements, writes Paul Hannon at The Wall Street Journal.

In its quarterly report, published on Sunday, the Basel-based club for central bankers said that despite the four increases in short-term policy interest rates over the last two years, the movement in asset prices suggests investors are just as willing to take on risk as before — if not more so.