Fed eyes trouble in commercial real estate, corporate debt in 2021 stress tests
Nineteen of the nation’s largest banks will be subject to this year’s test, with results published sometime in the summer
FILE PHOTO: The Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 27, 2019. REUTERS/Brendan McDermid/File Photo
The US Federal Reserve unveiled the hypothetical recession it plans to test large banks against in its 2021 stress tests, which includes "substantial stress" in the commercial real estate and corporate debt markets.
The scenarios, published Friday, also envision a global recession where US unemployment jumps to 10.75%, economic growth falls by 4%, and the stock market sheds 55% of its value.
Nineteen of the nation's largest banks will be subject to this year's test, with results published sometime in the summer.
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