WS #15140
The Federal Reserve voted to finalize changes to its stress tests, marking a major victory for Wall Street's lending giants and reducing regulatory burdens on major banks. This policy shift is corroborated by US macro data showing PCE inflation cooling to 3.4% YoY, although core inflation remains sticky and the trade deficit widened. The combination of easier bank regulation and cooling inflation provides a supportive backdrop for the financial sector, though the widening trade gap and persistent geopolitical risks pose a threat to the sustainability of this macro stability.
US Macro and Financial Policy
The Federal Reserve voted to finalize changes to its stress tests, marking a major victory for Wall Street's lending giants and reducing regulatory burdens on major banks. This policy shift is corroborated by US macro data showing PCE inflation cooling to 3.4% YoY, although core inflation remains sticky and the trade deficit widened. The combination of easier bank regulation and cooling inflation provides a supportive backdrop for the financial sector, though the widening trade gap and persistent geopolitical risks pose a threat to the sustainability of this macro stability.