Fed to Stress-Test 33 Banks on Weathering Global Recession

  • Worst scenario includes U.S. unemployment rising to 10%
  • Adverse scenario would entail declining U.S. interest rates

The Federal Reserve said it will analyze in its annual stress tests how 33 large banks, including Bank of America Corp. and JPMorgan Chase & Co., would withstand a severe global recession, a doubling of the U.S. unemployment rate to 10 percent and moderate deflation.

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