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Fed might count Treasury holdings as reserves

Thursday, February 13, 2020   (0 Comments)
Posted by: Amanda Averch
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The Federal Reserve is considering a change that would count a bank's Treasury holdings as "fully substitutable" for reserves when complying with liquidity requirements, Chairman Jerome Powell says in a letter to Sen. Sherrod Brown, D-Ohio. The change would not lessen banks' liquidity obligations, Powell says.

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