U.S. Treasury Discusses Easing Capital Regulations on U.S. Debt

Jinse reports that Michael Faulkender, Deputy Secretary of the U.S. Treasury, stated that officials are discussing a potential rule change targeting banks. As U.S. debt declined last week, attention to the regulatory provision "Supplementary Leverage Ratio" (SLR) has skyrocketed. The largest drop in U.S. debt in over two decades has raised concerns about a market collapse similar to March 2020. Any rule changes would still require approval from the Federal Reserve and other regulatory agencies, even though the chairman of the Financial Stability Oversight Council, responsible for U.S. financial stability, is the Treasury Secretary. Faulkender stated at an event, "We are investigating this matter and have begun discussions."