While increasing its salvo to fight coronavirus (COVID-19), the US Federal Reserve announced new rules on Wednesday that create a “stress capital buffer” to determine how much banks must hold in reserve to guard against downturns, as per Reuters. Key quotes The final rule would integrate capital requirements stemming from the Fed’s annual bank stress tests with regular capital standards. Fed staff estimated the final rule would actually lead to somewhat higher capital requirements for the nation’s largest banks, like JPMorgan Chase and Citigroup, and lower requirements for smaller institutions. FX implications Amid increasing efforts to tame the negative economic implications of the deadly virus, the news helps in the current risk reset. As a result, the USD/JPY manages to extend the recovery towards 107.55 after the US 10-year treasury yields and Wall Street benchmarks recovered losses before a few minutes. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Forex Today: Central Banks in step, BoC cuts 50bps, RBNZ next? FX Street 2 years While increasing its salvo to fight coronavirus (COVID-19), the US Federal Reserve announced new rules on Wednesday that create a “stress capital buffer” to determine how much banks must hold in reserve to guard against downturns, as per Reuters. Key quotes The final rule would integrate capital requirements stemming from the Fed’s annual bank stress tests with regular capital standards. Fed staff estimated the final rule would actually lead to somewhat higher capital requirements for the nation’s largest banks, like JPMorgan Chase and Citigroup, and lower requirements for smaller institutions. FX implications Amid increasing efforts to tame the negative economic… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
