Every time someone says "stress test", I will point out that the stress tests did not model for interest rates rising like they did, which triggered the current

Every time someone says "stress test", I will point out that the stress tests did not model for interest rates rising like they did, which triggered the current problems we're having (or, really, interest rates being so low for so long was the actual problem IMO, but that's a whole separate conversation). Stress tests as currently implemented would not resolve the issue, and even if they were so wise to reactively throw in more aggressive changes to interest rates to these stress tests, would that be enough to catch the next problem? https://www.federalreserve.gov/supervisionreg/dfa-stress-tests-2022.htm https://www.federalreserve.gov/supervisionreg/dfa-stress-tes... See Tables 2.A and 3.A in 2022 Stress Test Scenarios (PDF), covering a 3-year period starting in Q1 2022. Look at the 3-month Treasury rate. In 2.A, rates go up to 1.5 by Q1 2024 and sit there. In 3.A, rates sit at 0.1 for three years. Rates are not the only variables, but the point remains that the interest rate changes that triggered these problems do not appear in the stress tests.