Fed’s Barr has put on his regulatory hat as vice chairman of supervision and says:
- Benefits of proposed higher bank capital outweighs the costs.
- Proposed higher capital requirements could raise funding costs for banks, but will enable them to absorb more losses.
- Post capital hikes would primarily impact banks trading, have limited impact on banks lending costs.
- Welcomes all comments on proposed rule to ensure that they accurately reflect risk.
Will be paying attention to any comments that he may have on the economy or monetary policy post the US jobs report on Friday