White House closely tracking commercial real estate after banking strains – Bernstein
2023.04.18 11:35
© Reuters. FILE PHOTO: Jared Bernstein, appointed to be a member of the Council of Economic Advisers, speaks as U.S. President-elect Joe Biden announces nominees and appointees to serve on his economic policy team at his transition headquarters in Wilmington, Delawa
WASHINGTON (Reuters) – White House economist Jared Bernstein said the Biden administration is closely tracking developments in commercial real estate after recent strains in the banking sector, given that many smaller and mid-sized banks have “non-trivial” holdings in commercial real estate.
Bernstein told the Senate Committee on Banking, Housing and Urban Affairs that occupancy rates in commercial real estate were well below pre-COVID levels and delinquincies had risen a bit recently, although they remained low in historical terms.
“The issue is very much on our watchlist,” Bernstein said during a hearing on his nomination to head the White House Council of Economic Advisers, when asked about the impact of the collapse of Silicon Valley Bank (SVB) on the sector.
