US: Fed lowers community bank leverage ratio to 8%

Eren Sengezer FXStreet

The US Federal Reserve announced on Monday that it has temporarily lowered the community bank leverage ratio to 8%.

"Under the interim final rules, the community bank leverage ratio will be 8 percent beginning in the second quarter and for the remainder of calendar year 2020, 8.5 percent for calendar year 2021, and 9 percent thereafter," the Fed explained in its press release."

Market reaction

The US Dollar Index edged slightly lower after this announcement and turned flat on the day near 100.70.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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