Fed’s Powell Shrugs Off Commercial Real Estate Woes as NYCB Stock Slumps

Commercial real estate challenges are a “manageable problem,” although they could take “several years” to be resolved, Federal Reserve Chair Jerome Powell told lawmakers as financial markets monitor another potential bank failure. Speaking before the House Financial Services Committee on March 6 to deliver his semi-annual monetary policy report, Mr. Powell reiterated his position that stresses in the commercial real estate market won’t lead to a wider calamity comparable to the 2008 global financial crisis. He explained that it’s a matter of market fundamentals. First, downtown real estate has too much office space, as more employees work from home. Second, downtown retail “is no longer profitable.”...