Fed stress tests tougher in 2019
Severely adverse scenario projects US economy to shrink 9.4%
This year’s Federal Reserve stress test scenarios assume a more calamitous recession than the 2018 iterations, meaning some banks may find the annual health check harder to pass.
The 2019 severely adverse scenario assumes real US GDP will contract –9.4% and unemployment will leap to 10%. Last year, the GDP slowdown was pegged at –8.9% and the unemployment rate projected also to rise to 10%, but
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