Economics
Fed to Resist Adding Capital Demand for Biggest Banks
- Countercyclical buffer would safeguard against sharp downturn
- Brainard is among officials saying step could be considered
The Federal Reserve building in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The Federal Reserve is facing calls within its ranks to consider activating an obscure capital buffer meant to bolster big banks against coming storms when economic conditions are sunny.
But for now, those pushing to weigh the demand for billions of dollars in new capital haven’t persuaded the key agency staffers who are reviewing the decision, according to people familiar with talks among U.S. banking agencies.