Fed’s Bank Capital Plan Needs Substantive Changes, Bowman Says

Federal Reserve Governor Michelle Bowman said the central bank’s controversial proposal to boost lenders’ capital needs “substantive changes” and the Fed should seek comment on any revised plan, a move that would delay its finalization.

Bowman, who last year voted against issuing the proposal for public comment, said she is “cautiously optimistic” that officials can work toward a compromise that would garner broader support for the plan led by Vice Chair for Supervision Michael Barr. Bowman’s colleague, Christopher Waller, who also voted against issuing the proposal last year, said Tuesday it needs a “major overhaul” and may have to be scrapped altogether.