Federal Reserve Governor Bowman announced that the central bank will finalize its reform plan to improve the transparency and accountability of bank stress tests in the coming weeks. The adjustments aim to make stress tests more reliable and reduce volatility in bank capital requirements. Going forward, the Fed will use the average of a bank's two most recent stress test results when determining its stress capital buffer. This methodological change is designed to smooth out year-to-year fluctuations and provide greater predictability for financial institutions managing capital planning.