Fed Warns of Significant Hit to Asset Prices If Crisis Grows
- Commercial real estate could endure major stress, Fed says
- Fed flags risks in twice-yearly report on financial hazards
The Marriner S. Eccles Federal Reserve building in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The Federal Reserve issued a stark warning Friday that stock and other asset prices could suffer significant declines should the coronavirus pandemic deepen, with the commercial real estate market being among the hardest-hit industries.
The Fed made the assertion in its twice-yearly financial stability , in which it flags risks to the U.S. banking system and broader economy. The document highlighted the central bank’s race to intervene in markets and temporarily dial back regulations on financial firms in response to the Covid-19 crisis.