Experts warn of credit crunch and bank stress in US financial system.

The Federal Reserve's periodic Financial Stability Report has revealed that the central bank's own economists are most concerned about banking stress, stubborn inflation, and commercial real estate. The report warned that a credit contraction could lead to an economic slowdown, and also sounded the alarm on commercial real estate as work-from-home trends have reduced demand for office space. The Fed has ramped up its monitoring of the performance of CRE loans and expanded examination procedures for banks with significant CRE concentration risk.