Investors hope that the Federal Reserve will allow major U.S. banks to invest about $150 billion in uncalled capital on stock buybacks, dividends and profits stimulate investment in the coming weeks after the ordinary examination of financial strength.
On Thursday, the Fed plans to present the results of the two-part annual stress test, which was carried out in response to the financial crisis, to assess the banks' ability to withstand an economic chaos that could threaten the stability of the system. These results are the first since the President Donald Trump inauguration.
Analysts do not expect that the Fed will announce any obvious changes to the stress test, but they anticipate higher benefits. According to their estimates, the Fed may allow banks to distribute almost the same amount of capital to shareholders over the next year as they generate in profits.