At a hearing before the Senate Banking Committee on her nomination to become Vice Chair of the Federal Reserve Board, Governor Lael Brainard argued that monetary policies must be "focused on getting inflation back down to 2 percent while sustaining a recovery."
In testimony before the Senate Banking Committee at a hearing on his nomination for a second term, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, concluded that the economy no longer needs the highly accommodative policies in place to deal with the pandemic and the aftermath.
Federal banking agencies provided information and guidance on the use of the two-quarter grace period under the optional community bank leverage ratio framework once temporary relief measures expire on December 31, 2021.
The FRB, the FDIC and the OCC extended previously issued no-action relief to asset managers and other institutions from certain regulations that limit extensions of credit to "insiders."
The SEC, the Federal Reserve Board, the OCC, the Department of Housing and Urban Development, the FDIC and the Federal Housing Finance Agency reassessed several provisions of the Credit Risk Retention Regulation and decided not to propose any changes at this time.
In a supervision and regulation letter to institutions that have large derivatives portfolios and relationships with investment funds, the Federal Reserve Board reiterated previously issued expectations as to large banks' counterparty credit risk management and margin practices.
Former Vice Chair for Supervision Randal K. Quarles covered a broad range of topics in his farewell remarks. He celebrated the overall strength of the banking system and suggested areas where there is latitude for regulatory change or recalibration.
The Federal Reserve Bank of New York launched a New York Innovation Center "to validate, design, build, and launch new financial technology products and services for the central bank community."
