Fed’s Bowman Says ‘Time Has Come’ to Reform Key Capital Rule

Federal Reserve Vice Chair for Supervision Michelle Bowman warned the current approach to leverage ratio requirements has led to unintended consequences in the market while adding she could support lowering interest rates as soon as July.

Bowman said the “time has come” to revisit the key capital buffer after concerns the rule has constrained lenders’ trading in the $29 trillion Treasuries market.