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Federal Reserve Report Highlights ‘Resilient’ Financial System - ABI

The Federal Reserve said on Friday that the U.S. financial system remains “substantially” safer than before the 2007-09 recession but noted a significant expansion in business debt and weaker lending standards, the Wall Street Journal reported. In its semiannual report to Congress Friday, the Fed echoed policy makers’ recent statements that the U.S. economy appears to be on solid footing, with gross domestic product growing “a little less than” 3 percent in 2018. Fed Chairman Jerome Powell is scheduled to testify before the two chambers of Congress on Tuesday and Wednesday as part of hearings mandated by law. Nearly a decade into the economic expansion, the central bank characterized the U.S. financial system as “substantially more resilient” than before the 2008 financial crisis. Post-crisis regulations and reserve requirements have left financial institutions, particularly large banks, in a strong position, the Fed said.

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