Board of Governors of the Federal Reserve System

I want to thank the staff who worked on the proposals and made the presentation today.

I support the proposal because of its key feature, which is increased transparency. The Federal Reserve's stress test has been obscure since inception and has not yet faced the rigorous testing that disclosure and public comment will provide. Regulatory transparency has many virtues, including increasing trust in the regulator, providing an appropriate level of predictability for regulated entities, enhancing accountability, and improving the quality of the underlying regulations. I think that over time this process will improve the quality of the stress test and increase confidence in its results.

I am particularly curious to see how commenters respond to the design and calibration of the 2026 scenarios. While the scenarios presented are not Federal Reserve projections for the path of the economy, the set of assumptions underlying their design appears largely implausible and inconsistent with plausible macroeconomic outcomes and market distress. Using conceptually sound scenarios for assessing tail risks may be more valuable than relying on inherently inconsistent assumptions to achieve a desired level of stress.

Thank you again to the staff. While I very much support increased transparency and predictability and thus lend unqualified support to moving forward with the proposals today, I'll withhold final judgment on the 2026 scenario until seeing comments from the public.