The Federal Reserve Board ("FRB") identified an error in the historical dataset utilized in its 2019 stress tests.
As previously covered, the FRB issued scenarios for the 2019 Comprehensive Capital Analysis and Review and Dodd-Frank Act stress tests. Each scenario includes 28 variables (e.g., gross domestic product, the unemployment rate, stock market prices and interest rates) that cover domestic and international economic activity.
The mortgage rate, which is one of the variables for the supervisory scenarios, in the fourth quarter of 2018 was originally published as 4.6 percent. The FRB said that it should have been 4.8 percent. All other variables remain unchanged.
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