Powell says Fed will announce update on SLR exemption in coming days

Federal Reserve Chair Jerome Powell said on Wednesday that the U.S. central bank will share an update on a bank liquidity rule in the “coming days.”

An exemption on the “supplemental leverage ratio” was put in place at the start of the coronavirus pandemic to encourage big banks to lend and support bond and short-term funding markets. The exemption, which reduced the amount of capital banks must hold against Treasurys and some deposits, is currently set to expire on March 31.