The U.S. Department of the Treasury said Treasury Secretary Scott Bessent convened the Financial Stability Oversight Council in executive session, where members reviewed a range of financial stability and policy workstreams rather than announcing a new rule or designation. The meeting covered an interagency tabletop exercise on geopolitical risk, the Council’s artificial intelligence work, the quarterly financial stability monitor, public comments on proposed interpretive guidance for nonbank financial company designations, and planning for the 2026 annual report. Treasury staff briefed the Council on a recent geopolitical risk exercise hosted by Treasury as part of the Council’s economic security work. Members also received an update on the Council’s AI Working Group and four public-private roundtables held under the AI Innovation Series. The quarterly monitor presentation covered second-quarter 2026 developments in the banking sector, financial markets, household finances and financial innovation, alongside discussion of supply chain risks, AI implications for labor and capital markets, and cybersecurity. On nonbank oversight, the Council reviewed public comments on its proposed interpretive guidance on nonbank financial company designations and will continue work toward finalizing that guidance. The Council also approved the minutes of its previous meeting on May 6, 2026.

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