The Federal Reserve's approval is a pivotal moment for Lakeland Bancorp in its merger with Provident Financial Services, indicating a move towards finalizing the merger. This development is likely to be seen favorably by the market, as it suggests the companies are closer to achieving the anticipated benefits of the merger, including operational efficiencies and a stronger market position.

The approval by the Federal Reserve is a critical regulatory step for mergers in the banking sector, removing a significant hurdle towards completing the merger. This approval is likely to be viewed positively by investors, as it signals progress in the merger process and potential realization of synergies from the consolidation.