Michelle Bowman on Fed's Bank Capital Rules Overhaul & Jackson Hole Preview

Bowman's Regulatory Focus

• 🎯 Fed Governor Michelle Bowman is prioritizing her current regulatory agenda, which includes overhauling big-bank capital rules and addressing "debanking."
• ⚡ She stated, "I have a big agenda. We’re moving through it quickly," emphasizing the need to complete capital proposals soon.

Overhauling Bank Capital Rules

• 🏦 The US has not yet ratified the Basel III international agreement on banking.
• ⚖️ The Biden administration's stricter proposal is being discarded by the Trump administration in favor of lighter rules for banks.
• 🗓️ A new plan is anticipated by the first quarter of 2026, informed by a July conference on the holistic review of bank capital rules.

Federal Reserve Monetary Policy at Jackson Hole

• 📉 Fed Chair Jay Powell is expected to discuss the possibility of a September rate cut, but will likely remain non-committal, dependent on upcoming economic data.
• 📊 The employment and CPI reports will be crucial in determining whether rates remain unchanged or are cut.
• 🔄 Powell may outline the Fed's new monetary policy framework, potentially moving away from the 2020 approach that led to post-COVID inflation.

Blockchain and Crypto at Jackson Hole

• 🌐 The Wyoming Blockchain Conference is taking place alongside the Fed's meeting, with a positive vibe due to the Trump administration's supportive stance on crypto.
• 💡 Discussions include whether the government should develop a digital dollar or leave the space to the private sector, with a preference for light-touch regulation.
• 🎤 Fed Governor Michelle Bowman and Chris Waller are scheduled to speak on the future of crypto.