Fed's Bowman Wants to Give Banks More Flexibility on UST Markets -- Market Talk
Dow Jones
Aug 19
1130 ET - The Fed is still working on an enhanced capital framework for U.S. banks, Fed governor Michelle Bowman says in a Bloomberg interview. She says one pillar of the framework, the supplemental leverage ratio, has worked as a binding constraint "in cases where there's been a lot of activity in the Treasury market." Bowman said the goal is to be more flexible. "We wanted to make sure that banks have the ability to allocate capital in ways that are helpful and productive for them." She says the Fed wants to ensure that "we're not disincentivizing activities that would allow [banks] to intermediate the Treasury markets." (paulo.trevisani@wsj.com; @ptrevisani)
(END) Dow Jones Newswires
August 19, 2025 11:30 ET (15:30 GMT)
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