WASHINGTON – Large banks will simulate their ability to weather both deflation and a recession among the annual economic scenarios provided by the Federal Reserve Board on Thursday for the central bank's 2016 stress tests.

As part of its stress test regime, the Fed releases hypothetical scenarios of varying degrees to assess the strength of banks with over $50 billion in assets. This year's scenarios will feature deflation as part of the "adverse scenario," and a major worldwide recession as the "severely adverse scenario."

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