ZION - Fed publishes bank stress tests as recession talk looms in background
The Federal Reserve will release the results of its 2022 bank stress tests on Thursday, which were established under Dodd-Frank regulations following the global financial crisis. All 34 U.S. banks with over $100B in assets will be checked against a series of doomsday scenarios to ensure their balance sheets can with withstand a hypothetical downturn. The results - which will particularly focus on stress in commercial real estate and corporate debt markets - come amid growing fears of a looming recession, meaning an economic spiral may not be that hypothetical. Snapshot: In the first session of a two-day testimony on Capitol Hill, Fed Chair Jerome Powell emphasized that the central bank plans to keep raising interest rates until it sees clear proof that inflation is slowing, even if that means causing a recession. "It's not our intended outcome at all, but it's certainly a possibility," he told the Senate Banking Committee.
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Fed publishes bank stress tests as recession talk looms in background