Fed Says Banks Can Handle ‘Severe’ Recession With 10 Percent Unemployment, 55 Percent Stock Meltdown

Federal Reserve Board Chairman Jerome Powell speaks during a news conference following a meeting of the Federal Open Market Committee (FOMC) at the headquarters of the Federal Reserve in Washington on June 15, 2022. Drew Angerer/Getty Images

America’s banks are resilient enough to withstand even a “severe” recession with unemployment soaring to 10 percent, the real estate market melting 40 percent, and stocks sinking 55 percent, the Federal Reserve said.

The Fed put dozens of America’s biggest banks under a “stress test” exercise to evaluate their resilience and ability to support a potential economic crash.