Fed to Add Pandemic Stress Test, Will Consider V-, U- Shaped Recovery; Double Dip Recession

from Zero Hedge

In a speech published the Fed’s vice chair Randy Quarles, which comes one week before the results of the Fed’s annual stress tests are revealed (and which some speculate will impose limits on how many dividends the banks can pay out), the Fed’s top banking regulator announced that for the first time, the Fed will also add a coronavirus pandemic stress test, one which assess for an optimistic V-shaped recovery, ii) for a slower, U-shaped recovery (in which only a small share of lost output and employment is regained in 2020), which also sounds optimistic, and iii) a W-shaped double dip recession which accounts for a second wave in infections.

From the speech:

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