Fed governor Michelle Bowman said Tuesday that federal officials are overstepping the spirit of the law with a series of proposed bank rules now under debate.
“At a time when confidence in public institutions is waning, the Federal Reserve should strive to demonstrate beyond doubt that it executes its duties in an independent manner, focusing on its statutory obligations,” Bowman said. “I fear that many of these actions may fall short of this objective.” On the topic of bank capital requirements, Bowman said the U.S. financial system is strong and resilient without them.
Bowman said that she supports the spirit of the Community Reinvestment Act, which aims to foster more lending in low- and moderate-income neighborhoods, but that the proposed regulations would impose an unfair regulatory burden on community banks.