Headline: Fed Keeps Bank Capital Buffers Steady Until 2027, Considers Stress Test Tweaks - FED-20260204

[Para 1: The Lead] The Federal Reserve has decided to maintain large bank capital levels through 2027, focusing instead on revising stress testing models. This decision, announced on February 4, 2026, aims to enhance transparency and address any deficiencies in the current testing methodologies. [Para 2-3: Supporting details & Context] Fed Vice Chair Michelle Bowman stated that the "stress capital buffers" for large banks will not be adjusted in 2026 but will be revised in 2027. This adjustment comes after the Fed has integrated public feedback and refined the annual stress testing scenarios, which evaluate banks' financial resilience against economic downturns. The Fed's October decision to open its testing models for public input reflects a commitment to improving the robustness and fairness of its banking oversight mechanisms.