After passing the Federal Reserve's stress tests with high marks, large banks announced dividend increases. In some cases, they also said the Fed had conceded that certain prior calculations needed to be revised.

Starting at 4:30 p.m., the 22 large banks that were stress-tested by the Fed can release information about their plans for dividend increases and share repurchases.

The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency are officially open to comments on their reform package for the enhanced supplementary leverage ratio.

The Federal Reserve's preferred measure of inflation moved further from its 2% target, underscoring the central bank's reluctance to cut rates.

Consumer spending and exports fell slightly in the latest estimate, leading to a downward revision. Imports, which dragged down overall output during the first three months of the year, also came in smaller.

Regulators proposed a rule to replace the 2% enhanced supplementary leverage ratio with a capital charge equal to half of a bank's global systemically important bank surcharge. Low-risk assets will continue to count toward leverage requirements under the proposal.

Federal Reserve Chair Jerome Powell said the changes could touch the central bank's quarterly economic forecasts. He also discussed downsizing at the Fed and his tenure on the board of governors.

Reports that the White House is considering naming Treasury Secretary Scott Bessent as the next chair of the Federal Reserve have raised eyebrows and speculation in Washington — especially in an administration with a penchant for assigning cabinet secretaries multiple jobs.

The Texas senator pitched Republican senators on ending the Federal Reserve's authority to pay interest to banks, claiming it would save $1.1 trillion over a decade.

As they rewrite the strategy document that guides their interest-rate decisions, Federal Reserve officials are trying to figure out how to embrace the labor market lessons learned before and during the pandemic.