Five House Republicans Urge Fed Chair Powell and Frank Lucas to Adjust Supplementary Leverage Ratio for Treasury Market Liquidity

Five House Republicans have called on Federal Reserve Chair Jerome Powell to implement measures aimed at enhancing liquidity in the Treasury securities market. This includes potential adjustments to the supplementary leverage ratio (SLR) and bank capital requirements. Frank Lucas, Chairman of the Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity, has emphasized the need for these changes, stating that he sent a letter to Powell urging for an adjustment to the SLR. Lucas noted that Powell agrees that it is time to make these changes. The push for reform comes as Congressional Republicans increase their scrutiny of the Federal Reserve's operations, highlighting the need for a focused examination of the institution's framework since its inception in 1913.