US Treasury discusses whether to relax US debt capital regulations

Michael Faulkender, US Treasury deputy secretary, said officials were discussing a possible rule change for banks. The "supplementary leverage ratio" (SLR) regulation has seen a sharp rise in attention as Treasuries fell last week. The biggest drop in Treasuries in more than two decades has raised fears of a market crash similar to the one in March 2020. Any rule change still needs to be approved by the Federal Reserve and other regulators, although the Treasury secretary chairs the regulatory board responsible for US financial stability. "We are looking into this and have started discussions," Mr. Faulkender said at an event.