Esther George, president of the Kansas City Fed, said the US economic recovery needed sustained policy support and that commercial real estate was at risk of financial instability.

"so far, the recovery has been neither complete nor balanced, nearly 10 million jobs have not been restored, and some industries are still struggling," George said at the University of Missouri-Kansas City Real Estate Seminar on Tuesday. although some industries report the best years in history. " .

The US economy is likely to recover strongly in the second half of the year with the arrival of vaccinations, he said, but the real estate industry faces structural challenges posed by Americans working from home, such as a drag on the value of office buildings in the city centre.

"the impact of real estate on financial stability should not be underestimated," George said. If financial support decreases before the economy continues to recover, the pressure is likely to become more prominent, especially in the context of destructive structural changes. Pressures in the commercial real estate market may also pose a major threat to financial stability. "

She said that if policy support is not maintained, Bank of America CorporationThe industry may suffer losses from real estate loans, which will be a drag on credit growth andEconomic activity.

"the worrying situation is that the economic impact of the pandemic exceeds the current policy support plan," George said. "