Central Banks
Wall Street Wins After Powell Signals Changes to Contentious Bank Rules
- Fed chair says ‘broad and material changes’ are likely
- Banks have waged a fierce lobbying campaign for months
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Wall Street banks are on the cusp of a sweeping regulatory victory after Federal Reserve Chair Jerome Powell signaled officials would scale back plans to make them hold more capital.
The world’s most powerful central banker flatly told lawmakers Wednesday that the government’s plan was in for “broad and material changes,” and that a complete do-over was very possible. Powell’s comments appeared to catch even seasoned industry lobbyists off-guard and immediately threw into doubt a signature Biden-era regulatory effort.