Fed’s 2019 stress tests to assume largest unemployment shock to date
Central bank also announces moves to enhance transparency in its stress-testing programme
The Federal Reserve Board will include the largest jump in unemployment yet in its stress tests this year, while also making the programme more transparent for the nation’s most complex banks.
In a statement released on February 5, the central bank announced the ‘severely adverse’ test scenario will feature a global recession where US unemployment will rise by more than six percentage points, up from around five percentage points last year.
The deeper recession reflects the stronger US macro
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