Story perspectives

Fed Proposes Stress Test Revisions Amid Controversy

10/25/2025

27 2

Summary

Story summary

The U.S. Federal Reserve plans to revise its annual stress tests for large banks to enhance transparency and predictability.
The proposal, approved by the Fed's Board of Governors, will reveal previously confidential models and scenarios.
Fed Vice Chair Michelle Bowman supports the changes for better capital planning, while Fed Governor Michael Barr opposes them, citing potential risks to bank resilience.
The Fed will collect public comments before finalizing the revisions, responding to industry complaints and a postponed lawsuit regarding the tests.

1 of 1

Story summary

The U.S. Federal Reserve plans to revise its annual stress tests for large banks to enhance transparency and predictability.
The proposal, approved by the Fed's Board of Governors, will reveal previously confidential models and scenarios.
Fed Vice Chair Michelle Bowman supports the changes for better capital planning, while Fed Governor Michael Barr opposes them, citing potential risks to bank resilience.
The Fed will collect public comments before finalizing the revisions, responding to industry complaints and a postponed lawsuit regarding the tests.