MNI BRIEF: Fed Must Pause Regulatory Reforms, Top Senator Says

A top Democratic senator Wednesday urged the Federal Reserve to pause regulatory reforms until President Joe Biden nominates and Congress confirms appointees for upcoming terms at the central bank.

Senator Sherrod Brown (D-OH), chairman of the Senate Banking Committee, said in a letter that a "new direction for financial regulation must be determined by whomever the President chooses, and Congress confirms."

The senior Democratic lawmaker also criticized Fed Governor Randal Quarles, who has led the central bank's internal supervision committee, for attempting "to gut the supplementary leverage ratio." MNI has reported that U.S. banks could face higher capital requirements and tougher stress tests under the next vice chair for supervision.