In his March 7 testimony before the Senate Banking Committee, Federal Reserve Chair Jerome Powell stated that the Fed has identified and is monitoring banks holding “high commercial real estate concentrations.” While he anticipates some bank failures, they are not expected among the larger banks and do not pose a systemic risk. His statements follow on Treasury Secretary Jane Yellen’s similar comments last month, anticipating pain among banks holding CRE, but that the situation will be “manageable.”
Fed Chair Powell Acknowledges CRE Poses Non-Systemic Threat
Published on March 15, 2024