Under the Section 112 of The Dodd-Frank Wall Street Reform and Consumer Protection Act 2010 (“Dodd-Frank Act”), the Financial Stability Oversight Council (“Council”) must report annually to Congress on a range of issues, including the activities of the Council; significant financial market and regulatory developments; and potential emerging threats to the financial stability of the United States. The report must also make recommendations for promoting market discipline; maintaining investor confidence; and enhancing the integrity, efficiency, competitiveness, and stability of U.S. financial markets. In this report, the Council describes the current state of the U.S. financial system and some of the major forces that will shape its development going forward. The report also includes recommendations for additional steps that should be taken to complement these efforts and further strengthen the financial system, including (i) heightened risk management and supervisory attention; (ii) reforms to address structural vulnerabilities; and (iii) continued progress on housing finance.