Finance

Federal Reserve’s Watered-Down Stress Tests Signal Complacency on Banking Risks

This year’s Federal Reserve stress tests gave all major banks a clean bill of health—but only after significantly lowering the economic severity scenarios, omitting critical risks like private credit exposure, and reducing scrutiny overall. Such softened testing raises alarming questions about the Fed’s true commitment to safeguarding American taxpayers from another banking crisis.

By Economics Desk | June 28, 2025