The U.S.’s largest banks remained “resilient” after absorbing $550 billion in losses in a simulated economic shock.

The Federal Reserve said all major banks passed this year’s stress tests, showing they can withstand a hypothetical severe economic downturn

A group of large US banks comfortably cleared the Federal Reserve’s annual stress test, setting the stage for lenders to boost buybacks and dividends for shareholders.

The Federal Reserve's targeted inflation measure ticked slightly higher in May, but the numbers didn't show a big tariff-related upswing. Prices rose by 2.3% over the 12 months through May, according to the personal-consumption expenditures price index,

While the consumer price index is more commonly known, the Fed relies heavily on the PCE for deciding its stance on monetary policy. At the moment, the Fed is keeping interest rates high – and borrowing costs for consumers elevated – as it wants to see more data on how President Donald Trump’s import tariffs are affecting inflation.

Most economists and policymakers are bracing for price pressures to intensify this summer because of President Trump’s tariffs.