Banks, Fed reduces capital requirement increase

Fed disappointed by inflation postpones rate cut

(Finance) – The Federal Reserve revises its proposal to increase capital requirements for big American banks, after reactions from the financial sector.

The central bank led by Jerome Powell now proposes an increase in reserves of 9% compared to the 20% initially assumed.

The initiative was announced by the vice president Michael Barr. According to the big Wall Street banks, the previous proposal would have damaged the economy and weakened American banks vis-à-vis foreign ones.

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