Federal Reserve Stress Test Predicts Large Banks Can Survive Severe 2024 Recession 💪

The Federal Reserve's annual stress test shows that large banks would face greater projected losses but remain well-capitalized to withstand a severe recession in 2024. Under the adverse scenario, total projected losses for the 31 banks tested would be near $685 billion. However, all banks would maintain capital above the minimum requirements. Higher credit card losses, riskier corporate loan portfolios, and higher expenses combined with lower fee income lead to increased losses compared to last year.