Buffett warns of increasing fragility in the financial system.

Warren Buffett has warned that as the connections between the banking system and non-bank institutions become increasingly close, 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 key hubs for the economy, handling trillions of dollars in funds every day. "They are interconnected, if one has a problem, it could spread to other institutions," Buffett said during an interview with CNBC on Tuesday. After a series of default events in the credit market recently raised concerns about the balance sheet risks of banks and private credit funds, investor sentiment has been affected. Buffett stated that once market panic spreads, many investors may quickly withdraw.