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Warren Buffett warned that as the connections between the banking system and non-bank institutions become increasingly tight, he has begun to see signs of vulnerability in the financial system. He stated that the stability of the financial system should be the top priority for the Federal Reserve and pointed out that banks like JPMorgan Chase are crucial hubs for the economy, handling trillions of dollars in funds every day. "They affect each other, and a problem at one institution could spread to others," Buffett said in an interview with CNBC on Tuesday. Investor sentiment has been shaken after a series of defaults in the credit market raised concerns about the balance sheet risks of banks and private credit funds. Buffett mentioned that once market panic spreads, many investors may quickly withdraw their funds.