Federal Reserve Board Member Advocates for Simplified Bank Regulation

According to Odaily, Federal Reserve Board member Milan expressed strong support for simplifying bank regulation during a speech on 'Bank Regulation and the Federal Reserve's Balance Sheet.' He suggested that the Federal Reserve should consider exempting government bonds and central bank reserves from bank leverage ratio calculations. Milan also endorsed the natural reduction of the balance sheet but hoped the Federal Reserve would immediately halt quantitative tightening at the FOMC meeting on October 28-29. He noted that a smaller Federal Reserve balance sheet would reduce interest payments to banks, and the size of the balance sheet should depend on the gradual removal of regulatory requirements.