[{"_1":2,"_123":-5,"_124":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87,99,111],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},"mediaId",6188190,"mediaKeyId","5064008-d80eef3eda532d6b0e7f502a6cf48e80","parentId",5064008,"title","Fed removes \"reputational risk\" from bank exams, signals easing on crypto supervision","audioSeconds",53,"startMs",2766000,"endMs",2819000,"viewUrl","/Search/View?dp=1&key=5064008-d80eef3eda532d6b0e7f502a6cf48e80&start=2766&end=2819","thumbnailUrl","https://assets.pipeline.soar.com/5064008-d80eef3eda532d6b0e7f502a6cf48e80/thumbnail_2766000.jpg","articleUrl","/articles/6188190/Fed-removes-reputational-risk-from-bank-exams-signals-easing-on-crypto-supervision","mediaUrl","https://secure.pipeline.soar.com/6188190-b04a3a0bd2b6fae8bf34403d98b86674/orig.mp4?Expires=1770762090&Signature=WccMtcTxamoShNQDHMyrX9~g99CColKgsoTmEy6szkYzhf9Ad6kv4YhB-yKjcjY0M7grT0QksN~QAmM7hAOYWWp7rSrDnSbGDerRrgKzvDWi2cV25T9T9NO4WpmOVaZrQjzzmDaX9egwTO1q1eMrOa03RzRj2Kzz1Lx7hIyWglGgUO733WNmWuj8G5K9HYAG7KRVWIcCy7p4cN9u8fQuQ9yDjKtEtE2ZrgfLxp5zU9yE2ZMhMNPtLM6-3ToWWctcaiP8YGKgZzVBrRYCWAAD~vou63aLobFSIG~lpEkFXDafAyJFxKG8D0GEZqqsRkAvc-z3twNGFvRnSusSj49Xgg__&Key-Pair-Id=KUT5TJCACFTXG","author","U.S. House Committee on Financial Services","date","2025-06-25T11:34:53.43Z","article","The Federal Reserve announced to the committee that it no longer will consider “reputational risk” as a component in bank examinations, and that the central bank has ended elements of its “novel activities” supervision program that previously created caution among banks considering work with digital asset firms.

Representative Scott Stile and other members described reputational risk as an opaque supervisory lever that had been used to push banks away from clients and sectors deemed politically sensitive. Chair Powell said he was not aware of a single new fact that prompted the change, but added the Fed and other agencies had come to view reputational risk as problematic over the course of 2024 and had moved to remove it from exams.

“We just think it's the right thing to do,” Powell told the panel. He said Vice Chair for Supervision Mickey Bowman led the announcement and implementation. Powell said banks remain free to choose their customers and to engage in crypto activities so long as they do so in a manner that preserves safety and soundness.

Powell also told the committee that he has observed a marked change in tone in the financial sector since the Fed and other agencies clarified supervisory expectations for crypto‑related activities. He said he expects “more activity” over time as industry and banks adapt to clearer guidance and as Congress advances legislation to regulate stablecoins and other digital payments.

Committee members asked how the Fed will ensure frontline examiners follow the new direction. Powell said Vice Chair Bowman — a former regulator with supervisory experience — is well positioned to work with examiners and the Fed will monitor implementation.

The Fed also said it will continue to require that banks engage in crypto or digital asset activities only in ways that are protective of safety and soundness; regulators emphasized that bank discretion over customer relationships remains central.","mediaType","Video","parentTitle","The Federal Reserve’s Semi-Annual Monetary Policy Report (EventID=118402)","oneSentenceSummary","The Federal Reserve told House lawmakers it has removed ‘‘reputational risk’’ from bank examinations and has scaled back supervisory statements that deterred regulated banks from engaging with crypto firms.","taxTitle","Financial Services: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal","taxId",1981,"location","","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6188198,"Fed holds policy steady, cites tariff uncertainty as key reason to wait on cuts",275,1172000,1447000,"/Search/View?dp=1&key=5064008-d80eef3eda532d6b0e7f502a6cf48e80&start=1172&end=1447","https://assets.pipeline.soar.com/5064008-d80eef3eda532d6b0e7f502a6cf48e80/thumbnail_1172000.jpg","/articles/6188198/Fed-holds-policy-steady-cites-tariff-uncertainty-as-key-reason-to-wait-on-cuts","https://secure.pipeline.soar.com/6188198-37b289b4bfa333bfa794198cc6bf51ad/orig.mp4?Expires=1770762090&Signature=W52JyAYm6BmwfTAiR~reaBR3I2XrVOz7fhiK-PVTG37Hhx6c~U8~50Nv~ofoSmqBUqrTXXuv~jnnBqRH4jOiv6H3yamIEIfVekPg29Tbx9PIw8Ral2d3FTn4TDostsHmOZBygS7K1aYzMbFF~3m5Kxjh~JqqSJlRm1asAE5GNIkV4enJwTVprGbZx2F0T6m2T~2XkndtfEoCl9FURwT47O~~Z5nOXf0F~EprSH-H9K97q8tYamZaYmxGWrAbBDlRoFz7Px~1pxAU6RxzVQ3bTHS7QmYhIqyozWYAk-021TnSF2MVnsZfahvglb9iuxochJmQShjCmPSu1EIl~mN9Tg__&Key-Pair-Id=KUT5TJCACFTXG","Federal Reserve Chair Jerome H. Powell told the House Financial Services Committee on Wednesday that the Federal Open Market Committee is maintaining its target range for the federal funds rate at 4.25% to 4.5% and is delaying any decision to cut until there is clearer evidence on the inflationary effects of recent tariff actions.

“We will continue to determine the appropriate stance of monetary policy based on the incoming data, the evolving outlook, and the balance of risks,” Powell said in his opening remarks, adding that while “inflation has come down a great deal,” it still remains somewhat above the Fed’s 2% objective.

Powell said incoming price data and business reports suggest tariffs are beginning to show through to prices and warned that the size, timing and persistence of any tariff pass‑through remain highly uncertain. “Increases in tariffs this year are likely to push up prices and weigh on economic activity,” he said, adding that the effects could be short lived or more persistent depending on how fully the costs are passed to consumers and on longer‑run inflation expectations.

Members of the committee pressed Powell on whether the FOMC sees a pathway to rate cuts if tariff effects prove small. Powell said several paths are possible: if tariffs and other forces result in less persistent inflation than expected, that would “tend to suggest cutting sooner.” Conversely, if inflation proves larger or the labor market remains unexpectedly strong, cuts would be pushed later.

Powell reiterated that the Fed’s decisions are data dependent. He pointed to recent labor market strength — payroll job gains averaging about 224,000 per month in the first five months of the year and unemployment at 4.2% in May — as one reason policymakers have not yet moved to reduce policy rates, even though many private forecasters have penciled in cuts later this year.

The Fed chair also stressed the agency’s dual mandate of maximum employment and stable prices and framed price stability as essential to sustaining strong labor markets in the long run. He told the committee the Fed remains “well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”

Several members urged action to lower rates sooner to ease borrowing costs for households and businesses; others warned that further rate cuts in the face of uncertain tariff pass‑through risk re‑igniting inflation. Powell said the committee will watch the June and July inflation readings closely and adapt policy as new information arrives.

Powell closed by reaffirming the Fed’s objective: “We at the Fed will do everything we can to achieve our maximum employment and price stability goals.”","Federal Reserve Chair Jerome H. Powell told the House Financial Services Committee the FOMC is keeping the federal funds rate at 4.25%–4.5% and is delaying cuts until the size and persistence of tariff‑related price effects become clearer.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6188194,"Fed signals SLR reform as way to bolster Treasury market intermediation",114,4020000,4134000,"/Search/View?dp=1&key=5064008-d80eef3eda532d6b0e7f502a6cf48e80&start=4020&end=4134","https://assets.pipeline.soar.com/5064008-d80eef3eda532d6b0e7f502a6cf48e80/thumbnail_4020000.jpg","/articles/6188194/Fed-signals-SLR-reform-as-way-to-bolster-Treasury-market-intermediation","https://secure.pipeline.soar.com/6188194-45ec4759db7445e5fadf39c905493699/orig.mp4?Expires=1770762090&Signature=K9H2pP6sa0cCbysJp~wYhH0HGeN8yLUzXPc6cAk057AyoDM6eyOceBUN5Et6dH9gm2Dc1GaLNz~vxnRaLnWc23I0xAfA8iIzByBvsnjdDPaQj-LzFxGmIRbsReWyv4GeB6SDZMZENdXpCGQsyhD4r95uQwn0B-gHZ1zKhCiywXAvNF8-pb3ZuDGITOwJGkWq~iLmqRKPSu9tGnPs~tXpsspoIhyMi3Vdv0uL8vqK27n1i0ggXNtZJZl3iQPxhGmakEGJrkVRC986M8aUKbhHQy7vpT3cbUgUzM~T32fSQfDJySw9G4g2GvpUmeyENpdUPOZax6AE88y4zSeWgWD0kw__&Key-Pair-Id=KUT5TJCACFTXG","Federal Reserve Chair Jerome Powell told the House Financial Services Committee that the Fed supports reforms to the supplementary leverage ratio (SLR) and related leverage measures to reduce unintended constraints on bank intermediation in the Treasury market.

“When the leverage ratio is binding, it discourages banks from undertaking low margin, fairly safe activities such as intermediation in the Treasury markets,” Powell said. He added the Fed will publish a proposal for comment that “doesn't involve exclusion” in its primary option but also asks questions about possible exclusions for treasuries and reserves.

Committee members and Treasury officials have argued that SLR treatment of Treasuries and reserves limits banks’ capacity to intermediate in the market, increasing volatility and funding costs. Powell said the Fed temporarily excluded Treasuries from the SLR during the COVID emergency and that he supports a permanent, carefully sequenced reform to reduce the leverage‑ratio tax on such intermediation.

The chair also said the Fed will seek public comment and coordinate with prudential counterparts. He described the approach as a move to make the leverage ratio a backstop rather than the binding constraint, which he said would encourage more market‑making and liquidity in U.S. Treasury trading.

Members of the committee pressed Powell about whether netting for derivatives referencing Treasuries and other technical rule changes would be examined; Powell said he was “certainly open” to those conversations and pointed the committee to Vice Chair for Supervision Mickey Bowman as the lead on sequencing and supervisory details.

Powell said the Fed expects to issue a notice of proposed rulemaking and encouraged public comment; several members said they would welcome prompt action to improve market functioning.","Officials previewed a proposed notice seeking comment on changes to the Supplementary Leverage Ratio and related rules that Fed leaders say have discouraged bank intermediation in the Treasury market.",{"_33":100,"_35":36,"_37":38,"_39":101,"_41":102,"_43":103,"_45":104,"_47":105,"_49":106,"_51":107,"_53":108,"_55":56,"_57":58,"_59":109,"_61":62,"_63":64,"_65":110,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6188180,"Powell warns about data degradation as agencies cut surveys; Fed watches measurement quality",91,3077000,3168000,"/Search/View?dp=1&key=5064008-d80eef3eda532d6b0e7f502a6cf48e80&start=3077&end=3168","https://assets.pipeline.soar.com/5064008-d80eef3eda532d6b0e7f502a6cf48e80/thumbnail_3077000.jpg","/articles/6188180/Powell-warns-about-data-degradation-as-agencies-cut-surveys-Fed-watches-measurement-quality","https://secure.pipeline.soar.com/6188180-a52a640df8dff055a7ab440651fe2511/orig.mp4?Expires=1770762090&Signature=TpEzwlDUzDCTJamwnbXdT~apnPqIzDhWQGy005JsLwxNc4OC0cpaolM1kaCPyaW~hSgfL9yQD3rpa8J2JNwYfKvG3rj8t0xsfSIaBFZHsTNwWEmogKTc-jxb9adiP9xM~2bn9optVeG4TaWU0dp5w2bDKH1Kzlf5qvW6O57SHzEQ6sKfRPdi1TJ8SynK-jTb16zhjLzgFL1tSkx4BHop4g5YUf80hDFNvKVn4xXKaFY4VMwCdnmf-Q6Sz~UIYYNKk0sxymHdBLFX-hlw297FtC7v7wCBirNAjdZS68j1m5oBcmZ2A17eLhN6aOxqGKrQ9brwOzfm19tCIoJaM~0EoQ__&Key-Pair-Id=KUT5TJCACFTXG","Lawmakers from both parties pressed Federal Reserve Chair Jerome Powell about the integrity and future of the public statistical system, citing funding cuts and personnel reductions at agencies such as the Bureau of Labor Statistics and the Office of Financial Research.

Powell told the committee he was not worried about data accuracy “today,” but said he is concerned about the direction of travel: reductions in the scope of surveys, lower response rates and other declines in measurement capacity would make the data more volatile and less reliable over time. He urged continued investment in measurement, saying accurate statistics are critical not only for the Fed but for Congress, businesses and households.

Members also flagged the proposed Interior of budgetary and staffing changes at statistical agencies and asked whether the Fed could compensate with private data sources. Powell said the Fed increasingly uses private‑sector datasets as supplements but that government statistics remain the gold standard and should be preserved and improved.

Several committee members asked for assurance the Fed would alert Congress if measurement capacity deteriorated materially; Powell said he would raise concerns if they arose and emphasized the importance of long‑term investment in data collection and analysis.","Chair Powell told the committee he is not presently concerned about the accuracy of core economic data but warned of a troubling ‘‘direction of travel’’ as statistical agencies shrink surveys and survey response rates fall; he urged continued investment in measurement.",{"_33":112,"_35":36,"_37":38,"_39":113,"_41":114,"_43":115,"_45":116,"_47":117,"_49":118,"_51":119,"_53":120,"_55":56,"_57":58,"_59":121,"_61":62,"_63":64,"_65":122,"_67":68,"_69":70,"_71":72,"_73":72,"_74":72},6188185,"Powell: restoring price stability best long‑term route to fix housing; rates mainly affect demand",157,2452000,2609000,"/Search/View?dp=1&key=5064008-d80eef3eda532d6b0e7f502a6cf48e80&start=2452&end=2609","https://assets.pipeline.soar.com/5064008-d80eef3eda532d6b0e7f502a6cf48e80/thumbnail_2452000.jpg","/articles/6188185/Powell-restoring-price-stability-best-longterm-route-to-fix-housing-rates-mainly-affect-demand","https://secure.pipeline.soar.com/6188185-17862ed3360cffb772107a12977bc5e2/orig.mp4?Expires=1770762090&Signature=JAgFxZ~~FWszqhynZgkCtHEeLQa5XzeAneXwaUfBBBBJOlneG5TF-IHstRABwffk6kCtSLjpOP2z80xmtXvmM4SIXwMMs9xTiGF7T3wsSwBnjFQ93bSJhwrQG5E01FU-iKc~FEKvgJbXLWKVbKKN~g4OrGl2v-sTTWHhqIHILYuT27pvRK4Hfnzp4ypxV-VEMRG8zVITWOGpzyX9OQZ~nC~xG3KNFGnyT9QNVXrBwm5eOO36ZkdG~rgP0HKEAImjvC4XQI-PVfoO8EA0~6SiykS6Tb5x9IuTKbqxmQg3ZdHVt2iQDjTPsA25I3s4b1TyQlkHljivTLkIAI5XnWfI~Q__&Key-Pair-Id=KUT5TJCACFTXG","Several members used the hearing to press the Federal Reserve on the relationship between high interest rates and the U.S. housing shortage. Chair Jerome Powell told lawmakers the Fed’s policy primarily affects housing demand in the short run and that restoring price stability is the best way to bring down financing costs in the medium term.

Powell told Representative Rashida Tlaib and others that higher interest rates are “interest‑sensitive” and weigh on housing activity, adding: “The best thing we can do for the housing market, the absolute best thing, is to restore price stability so that rates come down.” He also said there is a longer‑run shortage of housing supply that monetary policy cannot directly fix.

Members highlighted data on eviction, homebuilding at five‑year lows, and the disproportionate effects on Black homeownership in some states. Powell acknowledged the housing sector’s importance and said the Fed monitors owner’s equivalent rent and rental measures that have been a “sticky” component of inflation but now show signs of moderating.

The chair said tending to price stability would, over time, permit lower interest rates and improved housing affordability, but he stressed that supply constraints — permitting, zoning, construction costs and labor — also require legislative and local actions beyond the Fed’s remit.

Lawmakers pressed whether prolonged high rates could reduce future housing supply. Powell replied that monetary policy does not drive long‑run housing supply, though it affects activity in interest‑sensitive sectors and that restoring price stability “in the long run” is the Fed’s contribution to better affordability.","Chair Powell told the committee the Fed sees high interest rates as damping housing demand but said monetary policy is not the tool to fix long‑run housing supply; restoring price stability is the most effective route to lower mortgage costs over time.","actionData","errors"]

Article not found

Fed removes "reputational risk" from bank exams, signals easing on crypto supervision

Fed holds policy steady, cites tariff uncertainty as key reason to wait on cuts

Fed signals SLR reform as way to bolster Treasury market intermediation

Powell warns about data degradation as agencies cut surveys; Fed watches measurement quality

Powell: restoring price stability best long‑term route to fix housing; rates mainly affect demand