Yellen's Warnings and Support for Real Estate, Crypto, and Banking.
Treasury Secretary Janet Yellen has warned that banks could face strain from their exposure to weakening commercial real estate valuations, particularly in the office property sector, due to changing attitudes towards remote work and higher interest rates. Experts predict office values could fall by 20%-50% from peak levels, with multifamily values dropping as much as 22.5%. Banks own 61% of US commercial property debt, and Yellen says they are preparing for restructuring and difficulties ahead. However, stress tests show they have adequate capital to withstand fallout from the commercial property market.