Warren’s buffer plea is point-scoring, says expert
Professor attacks senator’s call for Fed to tighten bank regs, but echoes concerns about weak lenders
A professor of economics has said that US senator Elizabeth Warren’s call for the Federal Reserve to activate the counter-cyclical capital buffer was made to score partisan points, notwithstanding the real risk of recession.
Warren made her request on August 7 in an open letter to Lisa Cook, a Federal Reserve governor and chair of the central bank’s financial stability committee. The Fed’s chair Jerome Powell and its vice-chair for supervision Michelle Bowman were cc’d. The buffer is designed to
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