The stress test, which will include 22 banks compared to last year’s 32, will feature two added hypothetical elements for the Fed’s “exploratory analysis” of the banking system.

U.S. bank stocks rallied Thursday after the Federal Reserve announced hypothetical scenarios for its 2025 annual stress test that indicated smaller shocks to the economy. According to the new scenario,

The stress test changes bolster the case made by Wall Street analysts that U.S. banks will face a friendlier regulatory regime under the Trump administration.