Fed Chair Powell: We're seeking comment on proposal for SLR reform without excluding treasuries

Supplementary Leverage Ratio (SLR) Reform - Banking agencies are proposing changes to the supplementary leverage ratio, but the proposal under consideration may not exclude treasuries from the SLR calculation [2] - The Treasury Secretary argued that excluding treasuries from SLR could boost banks' ability to intermediate in the Treasury market and potentially lower Treasury yields by 30 to 70 basis points [2] - The Fed Chairman agrees that a binding leverage ratio discourages banks from low-margin activities like Treasury market mediation, and SLR reform should encourage more mediation [3] - The Fed temporarily excluded treasuries from the SLR calculation during the Covid pandemic as an emergency measure, and the Fed is now considering a permanent measure [5] Community Reinvestment Act (CRA) - The Federal Reserve, FDIC, and OCC intend to issue a notice of proposed rulemaking to repeal the 2023 Community Reinvestment Act and replace it with the legacy CRA framework [7] - The agencies are determining whether to issue a clean rescission and replacement of the rulemaking or consider amendments to the legacy rule [8] Supervision of Novel Activities Program - Changes could be made to the Supervision of Novel Activities program to encourage innovation [9] - Vice Chair Bowman is knowledgeable and experienced in supervision and can move supervision in a healthy direction while preserving safety and soundness [9][10]