[Federal Reserve Finalizes Annual Stress Test Assumptions and Maintains Current Capital Requirements Through 2027] The Federal Reserve Board on Wednesday finalized the assumptions for its annual stress tests to ensure that large banks can continue lending to households and businesses during a severe economic downturn. These scenarios are largely consistent with the proposals introduced in October 2023. Additionally, the Federal Reserve voted to maintain the current stress capital buffer requirements through 2027, after which new requirements will be adjusted based on public feedback to improve model transparency and fairness. Vice Chair Michelle W. Bowman stated that this move will enhance the transparency and equity of the models. This year's stress tests will evaluate the risk resilience of 32 banks under a global severe recession scenario, including a rise in unemployment to 10%, a 30% decline in housing prices, and a 39% drop in commercial real estate prices.