"Powell Warns of Bank Failures Due to Commercial Real Estate Losses"

Federal Reserve Chair Jerome Powell warned that some smaller and medium-sized banks could face failure due to their exposure to declining commercial real estate values, driven by the shift to remote work. Powell emphasized that the issue is not a major concern for large banks, but the Fed is working with at-risk banks to ensure they have enough capital and liquidity to weather the losses. While the decline in commercial real estate values could lead to bank failures, Powell expressed confidence that the Fed and financial regulators would be able to contain the fallout and prevent a broader crisis.