Federal Reserve Board finalizes changes to enhance the transparency and public accountability of its stress test and reduce volatility in its stress test-related capital requirements
Federal Reserve Board finalizes changes to enhance the transparency and public accountability of its stress test and reduce volatility in its stress test-related capital requirements
Source: Federal Reserve
―
DW NOTE
The Fed is tweaking its stress test methodology while credit spreads sit at 3.02% — the narrowest since before COVID — and the Strait of Hormuz has been shut for 215 days. Bank capital requirements are being recalibrated at exactly the moment the assumptions underlying every stress scenario are being invalidated in real time.