Board of Governors of the Federal Reserve System

Stress capital buffer extension:
I opposed the Board's decision to subject stress testing models to the notice and comment process because doing so would cause the tests to stagnate. This outcome is occurring today, with the proposal to freeze banks' stress capital buffers at outdated levels. The Board's standard practice as set forth in its rules would be to update firms' capital requirements in 2026 using the results of a supervisory stress test conducted in 2026. I would rather we calculate stress capital buffers using the 2026 stress test reflecting the most recent risk profiles of banks subject to the stress test. I dissent.

Stress test scenarios:
In connection with this year's scenario release, apart from the scenarios themselves, the Board has implemented several model changes that reduce the severity of the stress test, while not implementing appropriate model changes that would maintain a realistic level of severity. Weaker stress tests undermine the stress test's credibility. I dissent.