Big banks pass Fed stress test as they fight stricter capital rules

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Big banks pass Fed stress test as they fight stricter capital rules
Capital LevelsRegional BanksFederal Reserve
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The biggest US banks proved to the Fed they would all be able to withstand a severe global recession, demonstrating strength while they push regulators to...

The 31 large US banks that participated in a Federal Reserve stress test would all be able to withstand a severe global recession, a new demonstration of strength as they push back on stricter regulations that would require them to hold more capital.

The aggregate decline in capital ratios for the banks during a hypothetical downturn was larger than the decline posted by banks in last year’s test, when fewer lenders were examined. Still, it expects the central bank to pick up the pace of rate cutting in 2025, with the benchmark rate reaching 2.75% by the end of next year.The chip giant briefly became the world's most valuable company last week, but investors will worry its rally driven by the AI frenzy may soon end.High-quality REITs can give you high-yielding dividends monthly to earn a good passive income. The post 2 REITs on My Radar as Interest Rates Drop appeared first on The Motley Fool Canada.

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