Fed stress tests tougher in 2019

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 from a higher base. 

The Dow Jones Industrial Average is projected to trough 28% over the course of

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