Federal Reserve Chair Jerome Powell acknowledges the risks in the commercial real estate market, expecting more bank failures due to exposure but reassures that the risk is manageable and mainly affects small and medium-sized banks. Powell's comments contrast with the view that bad commercial real estate loans do not pose a significant threat to the overall banking system.
Fed Chair Powell joined a chorus of US officials who have argued that mounting bad commercial real estate loans donโt pose a risk to the overall banking system https://t.co/5RokXUOtGe
Fed Chair Powell joined a chorus of US officials who have argued that mounting bad commercial real estate loans donโt pose a risk to the overall banking system https://t.co/wJXqq5mqCs
POWELL: I expect more bank failures as a result of CRE exposure, but not big banks. Small and medium banks have the most exposure.
Powell says he now expects there to be bank failures from CRE Nothing to see here
Powell expects bank failures from CRE! $xlf $kre $nycb $iwm https://t.co/N04ieq08hu
๐ด FED'S POWELL: I EXPECT THERE TO BE BANK FAILURES FROM CRE. BUT NOT BIG BANKS, THERE ARE MORE SMALL AND MEDIUM SIZED BANKS WITH BIGGEST EXPOSURE.
โ POWELL: EXPECTS THERE TO BE BANK FAILURES FROM CRE
Federal Reserve Chair Jerome Powell says that commercial real estate risk is manageable, and concentrated in small and medium sized banks https://t.co/Eg09BzWgtJ https://t.co/UM0GQYm3Ch
"This is a problem we'll be working through for several years," says Fed Chair Powell on risks in the commercial real estate market. "I do believe that it's a manageable problem." https://t.co/J30SB7uuMd