Fed eyes trouble in commercial real estate, corporate debt in 2021 stress tests

  • 2/12/2021
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WASHINGTON, Feb 12 (Reuters) - The U.S. 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 U.S. 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. (Reporting by Pete Schroeder)

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