Powell Says US Banking System Can Withstand Commercial Real Estate Threats.

POWELL, Jerome H., 1953-; COMMERCIAL real estate; BOARD of Governors of the Federal Reserve System (U.S.); COMMERCIAL real estate loans; REAL estate sales

Federal Reserve Chair Jerome Powell has stated that while bad commercial real estate loans may lead to some bank failures, they do not pose a risk to the overall banking system. Powell assured lawmakers that the Fed is working with lenders to address potential losses. Treasury Secretary Janet Yellen also expressed a similar view, stating that while there may be failures, the situation will be manageable. Financial regulators have been closely monitoring the financial system for any fallout from struggling commercial real estate markets. The recent troubles at New York Community Bancorp highlighted potential risks, but the banking industry remains strong overall. [Extracted from the article]

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