the basel committee on banking supervision intended for the basel iii endgame proposal changes to be implemented in a capital neutral manner to ensure a level playing field for u.s. banks. following this intent, the previous vice chair for supervision initiated an implementation with capital neutrality in mind. his predecessor impose harsher requirements that exceeded recommendations. this only made the proposal more difficult for banks and their customers, but also weakened u.s. banks globally. he took his eye off the ball and went the wrong direction. will the federal reserve commit to conducting a more thorough impact analysis before finalizing any capital requirements to ensure they do not hinder economic growth? >> growth? mr. powell: yes. >> regulatory overage -- the faa faced many of the same requirements as large institutions but many of these banks serve as lifelines for small businesses and first-time homebuyers, and it is key for the federal reserve to protect these institutions and make sure they are not subject to one-size-fits-all regulation. what steps is the federal r

in october of last year, i led a bipartisan codel to basel, switzerland, met with the basel committee on bank supervision, and there the committee actually conceded to us, agreed with me that the michael barr proposal of july 2023 actually gold plated bank capital requirements and instead of actually promoting international harmonization, actually made american banks less competitive. they conceded that to us, so i applaud the fed for not moving forward on that july 2023 proposal that would have made it harder for large banks to, among other things, facilitate the smooth functioning of the u.s. treasury market, including holding treasuries on the balance sheet. a couple of questions. one is, should the goal of our bank capital rules, should it be regulatory harmonization internationally, or should it be american economic competitiveness? chair powell: i mean, clearly the goal is to have a strong banking system that supports american economic activity and growth. that's the ultimate goal. what you get from basel is a global floor so that the other banks can't run on less capital and so

cramer: when you look at the basel iii exercise can you think of anything specifically that ensures a competitive, diverse banking system is maintained rather than consolidation, whether it is fewer community banks, more regional banks, or if regional banks and more wall street banks? chair powell: think twice before you impose -- the kinds of things we impose on the largest banks and next to largest banks, you want to be careful not to just think we should do exactly the same thing. that is what tends to happen. for smaller banks it raises the fixed cost of banking and makes it harder to start new banks. it makes it harder for anybody but the largest to be successful and that's not what we want. we wanted a lot of competition. regionals, it's important they thrive. chair powell: i agree --. sen. cramer: i agree. thank you for staying with us for the day and i'm glad we could get you first. as we wrap up, senators that want to submit questions for the hearing record though 31 week from today tuesday february 18. chair powell, you have 45 days from that day to submit your response to q

and that was one of the big ideas behind the whole basel committee approach.'re where it sits now is we await leadership arrival, arriving at the occ and the fdic. and that seems to be happening. and when that happens, we're going to sit down with them and work our way through to a basel three endgame proposal. and i think we can do this reasonably quickly, one that is compliant, consistent with the basel requirements and also consistent with what other large jurisdictions are doing. i'm optimistic that we can do that fairly quickly, and we're committed to doing that. >> we always wanted our banks to be competitive with european banks, and i'm just curious. the original proposal that was in front of you, and i'd like your thoughts on this. it was estimated to increase our bank's capital by 19%, which i think may very well have created a potential disadvantage with within the u.s. institutions versus our european counterparts. with any new proposal, what's your thoughts? would you make a commitment that this would be a neutral approach with regard to capital? >

would you tell the committee today that it's your intent to re propose a basel three endgame approachhe fed, only not the other supervisors, and that it be taken into account the comments and that it be generally capital neutral. >> we do intend to repropose basel three endgame and we intend to do that just as soon as we can get together with the new leadership at the two other banking agencies. and as i mentioned, i think we can do that pretty promptly once that once those people are in place, i look forward to doing that. my long held view, as i've said in many of these hearings, is that capital in the banking system for the largest banks is at about. right. and that would be my starting point on going into these discussions. but i do want to defer. i do want to, you know, leave it for my upcoming, you know, new leadership at those agencies to have their own views on that. >> i think that's important. i think it needs to be coordinated and harmonized among our supervisory agencies. and i do want you to take into account how basel three endgame proposal interacts with other pending r

they debanked crypto assets, they have stress tests that put more capital on the sidelines and basel3 3 is another waiveo say you don't have enough money for mortgages and small businesses to start, because you have so much capital on the sidelines it's not good for the economy. jay powell needs to go back to calling balls and strikes fairly, not joining green energy schemes for financing. we need a fed chair that actually helps grow our economy. donald trump is going to fix the economy that joe biden broke. maria: yeah. i mean, look, we've got so much to look at. president trump is trying to tap into the energy capacity in america as a way to get inflation down and so far the expectations are that inflation is still elevated. what is the fed going to do now after telling us for so long it was tr transitory? >> well, you know, jay powell and i that conversation recently. i said it was transitory three years ago. it took him 112 12 months to gt there. we ought to know jay powell ought to do this j. hal-o-b.do is job. if you have more excavation of energy prices go down, not just at th

yesterday you noted that basel iii could be finalized quickly. given last year's extensive public commons, would you ensure that the rule does not restrict access to capital and incorporates industry feedback? you felt the capital reserves for banks was about right. i would imagine you are not looking for anything too drastic there. mr. powell: no, that's right. that's correct. rep. meuser: ok, great. so the cpi this morning came in a little hotter than expected at 3%. did this surprise you?this surprise you mr. powell: note of caution, we don't get excited about good readings or batten readings. need to know the translation from cpi to pce, and we get more data on that. tomorrow we get the producer price index. it is always wise -- people who follow us closely know this, that we know what the pce readings are late tomorrow. rep. meuser: ok. in the past, as you will note, you called inflation transitory. then the fed signaled three rate cuts for 2024 and the markets priced in six. now that you are saying there is no rush to cut rates, do you find

charles: i was intrigued by the fed being committed to basel iii capital rules because it feels likethe white house. i don't think donald trump wants to be involved in another extended agreement where europeans tell our companies what to do. >> it's a tall order given doge is focused on the complete opposite of that, trying to do things that that help small and mid-cap businesses thrive. and even in europe there's a sea change if you look at the political landscape there. charles: oh, yeah. >> i think it's going to be quite a challenge to get to the basel iii -- charles: and maybe he was just being honest, but the housing shortage will per persist even when the mortgage rates come lower. that's a blow to people looking to buy. >> absolutely. where are insurance and mortgage rates are, where tax have gone, affordability is worse than it was in the early '80s when you do sort of a catch-all here. yeah, it's going to remain terrible until and unless prices and rates come down significantly. charles: so we had the new york fed nip inflation if expectations yesterday, it was kind of muted

basel iii was not supposed to be an exercise in raising capital and u.s. banks. mario draghi said that back in the day, i believe. that is about right. we have some work to do, but we will get there, i believe, fairly quickly. in terms of your regionals, redo -- they don't face those surcharges. i don't face quite the burden that the larger banks face on resolution planning and that sort of thing. we certainly need those banks to be healthy and profitable, because we need them to compete with the g sibs. we don't want a world where they keep getting a bigger share of the economy. that is a lot of pressure. we have seen the number of community banks, especially, declining for 30 years. this is not something -- we don't want to be the cause of that if it is happening for financial causes or technology that's one thing, but we don't want to inadvertently cause that to happen. sen. cramer: as you look at a basel iii exercise, can you ensure the competitive diverse banking system is maintained rather than a consolidation? whether it is fury community banks, more regio

you basel good, you and you're doing it a lot of able to gravity homelessness. so child support system on. absolutely just fist on a lot of talks to class, give to the u. k. as in hub for training ukraine militants, sabotage on the us. special operation to land on 10 drugs sped, were trained by british instructors. the operations failed, and the students would come to our systems are also at the end of the year. so i didn't, and i know for your state case number of times gets to the doctor. so here's the minus sign. there's a couple times the points of december to go. it was captured during a special mission on the need. those 10 drove spit, george in the street guild, good lead. so signed a contract with ukrainian forces in the 2nd international legion, the key recruited him in germany. charlotte as to how many con it's tonsils k n one the probably. okay. so does our own rooftop sunset own? yeah. to based on to the phones in addition to training ukrainian soldiers underwent a psychological conditioning to florence, new logical association. sonya that contribute

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and this boeing you to stumble, your basel good. you and you didn't get a lot of able to glass. you have a solution, st. joseph of sister on absolutely the success, but on a lot of talk soon. class give you the u. k. as in hub for training ukraine militants, sabotage on the us. special operation to land on 10 drugs, sped, were trained by british instructors, the operations failed. and this students would capture the assistance on the preferred bullet control flyers and what it is, you know, for your state case breakdown gets to the doctor's eyes and you might have somebody made a couple of the points of december to go in was captured during a special mission on the neighbors 10 drove spit, georgia and the street getting late, so signed a contract with the ukranian of forces in the 2nd international legion, the key recruited him in germany. the charlotte is to the american, its front source, k, and one the finally. okay. so does our own detail uh, rooftop sunset own, you know, to, based on total funds in addition to training ukrainian soldiers underwent a psychological conditioni

. cam assist the for show us the most pretty baltic to awesome and this going you to stumble, your basel good. you and you didn't get a lot of able to grasp on this list of st. joseph of systems absolutely to success, but on a lot of talks to glance give you the u. k. is in hub for training ukraine militants . sabotage on the us. special operation to land on 10 drugs sped, were trained by british instructors. the operations failed and the students would capture the system the task at the end of the year. so, you know, for your state case breakdowns gets to the doctor's eyes and you might have slightly made a couple of times. the points of december to go in was captured during a special mission on the neighbors. 10 drove, sped, george and the 3 guild. good lead. so signed a contract with the ukranian forces in the 2nd international legion, the key recruited him in germany. the charlotte, as to the medic honest upfront tools k, dan one the probably. okay. so does our own little stuff uh, some thoughts own yeah. to based on total funds, in addition to training ukrainian soldiers underwent a

and this going you to stumbling basel can do anything at all. i level to glass, you have a sick child support system on absolute of the success, but on a lot of talks to glass give to the u. k. is in hub for training ukraine militants, sabotage on the us. special operation to land on 10 drugs sped, were trained by british instructors. the operations failed, and the students would capture the system, the preferred bullet controls that are at the end of what it is you know, for your state case breakdowns gets to the doctor. so here's the minus sign we made a couple times. the points of december to go room was captured during a special mission on the neighbors. 10 drove sped george in the street, gil dates so signed a contract with the ukranian of forces in the 2nd international legion, the recruited him in germany, charlotte as to the american its tonsils k, dan, one the probably. okay. so does our own delete the uh, rooftop sunset own you know, to based on total funds in addition to training ukrainian soldiers underwent a psychological conditioni

quick son know you enjoyed time with this senators and you talked a little bit about basel 3 in game. i talked about the intent to harmonize was true for the largest institutions in the world, but also do that in a way that is capital neutral. many of us here in congress on both sides of the aisle feel like vice chairman bars approach was -- would you tell the committee today that it's your intent to reap pro se thousand three in game approach and speak on behalf of the fed only, not the other supervisors, and that it be taken into account the comments that be generally capital neutral? >> we do intend to repurpose basel three and we intend to do that just as soon as we can get together with the new leadership and other banking agencies and as i mentioned i think we can do that pretty promptly. alonso's people are in place, i look forward to doing that. my long-held view as i've said in many of these hearings is that capital in the banking system for the largest banks is about right and that would be my starting point on going into these discussions. that i do want to defer and leave

>> the whole basel risk based capital framework has been an abject disaster for the banking system.to the rise of private credit. some might think that's a good thing, but it certainly moved the risk out of the banking system. they put prohibitive capital charges on banks investing in the private sector and facilitated turning. and i think i had this quote with you once before, cal essentially turning large banks into government bond funds. that's what financial repression is all about. and so a weakening of that basel framework will allow banks to again be prominent in private sector lending and drive dynamism, capital formation and the stuff that raises productivity over time, as opposed to having them facilitate excess government spending. >> well, it sounds great for the economy. maybe not as good for the long end of the yield curve, but which goes back to your point. do you want to leave us with a kind of comment on that? listen, it's pretty significant for the treasury secretary to say not so much. we don't care what powell does, but our real focus is getting ten year yields d

because they've had been there systematically inflicted upon an entire vacation lung has colleagues and basel living in this extreme information isolated.

so you're not expecting the present release of to go as smoothly as the hand over of the captives basel out. talk to us a little bit more if you can, because i know you your an expert in this issue about the, the particular batch of business that's going to be free to date, a 118. spend the old man 983. yes, yes. so we expect mm. yeah, we expect in the age of a 180 z, but as to what a 111 of them are from because as if they were to be sent back to the government this i'm actually a part of the city and dismissal with the some of the guys after october 7th, i estimated, please get on the signature and he's from the get us to the send. you have is supposed to do some of that. but this is actually the news that they will be able to be sent back to the governor's stories. all of this extra with the very bottom is that with the best way to practice. but again, the spanish speaking is from the guy, his name specifically at this to be the uh, detention center. good southern, but it's quite a bit remaining. but if it needs to be sent back to the us bank, specifically to us, if you wouldn't even

they've had been systematically inflicted upon and think we should long have become colleagues and basel living in the 6th stream information isolation, i suppose in itself, is arguably a form of torture, but specifically speaking prisoners. so i've been talking about being infected with skin conditions, such as staves about being shown videos of the destruction of the homelands, just shortly before being released. what details do you have? yes, i mean this done, this conditions of course interviewed. they write the form of communication banner and this kind of information, ben is, is yet another form of torture. but is there, it has actually been imposing what the forms of torture, including system as it can be things big. in addition, human lation of sexual assault, we read testimonies from the space inside minutes, it made it through detention center city to man weird about it. what is the quote to the, is there any sort? there's actually leap again, could be a simian detainees. we've also heard stories of that as a business says a systematically denying a business entities data medic

. >> you know, look, i think, you know, some of basel, basel already mentioned chris murphy.ing it. we're starting to see it. i hope that there are democrats that take the mantle of this like this is this could be a moment for somebody to really show passion. and again, look, there are other democrats out there. andy kim was out there. usaid, you know, if you start. >> naming people. >> you're going to. >> feel like this is a moment to really, you know, embrace, you know, being an outsider, fighting the man, fighting the powers that be, fighting the phones, fighting the big social media companies, fighting all of the billionaires and hundred millionaires that are now running our government and that right now are spending most of their time advancing their culture war agenda and laying off and firing people that that are that, you know, that work in our communities and not just in washington dc. you know, there are people that are going to lose their jobs at at, you know, hospitals and health centers and nurses all across the country. we could go all the way down the list. so

probably means the end of the basel three endgame that would raise capital requirements, so he will tryes. watch elizabeth warren in the hearing. the other big one is going to be asked about is d.e.i.. the fed is -- jonathan: we might say softer touch but the bank say sensible regulation and that is how they rate things. lisa: at a time where they think it went too far. some of the moves that we have seen have been far beyond what anybody expected including dismantling the consumer financial bureau of protection. a real question about whether the fed will lean into that five -- five. jonathan: lauren weighing in on the inflation data saying "much of the recent rise in price table -- levels have been driven by high shelter costs and sticky inflation on the service side. on mental factors include trends pointing to an uprising -- upcoming rise in inflation." what is that source? lauren: a number of factors, it is not just tariffs or trunk policies. we see the velocity of money increasing and the money supply that got attention when it was contracting. we see gross treasury issuance and th

basel across the bay area. getting ready. it is super bowl 59. are you ready? >> i am ready.ig match up. we got the eagles and the kansas city chiefs who seem to play in the game every year. >> that's right. ktvu joe fonzi spoke with multiple businesses about how they're gearing up for sunday. >> you look at the walls and consider the proximity to old kezar stadium, and it might surprise you to know that césar pub is a philadelphia eagles hangout. >> we pack the house every single eagles game. it's unlike anything i've ever seen. i grew up on the east coast, so seeing the east coast here is great. this bar, you know, it started off as a small group and then it eventually became what it is now. we've been having the same eagles fans come in for probably ten years. so we're taking that eagles energy and fandom base and having a little spot of it. and here in san francisco, i've never seen so many chicken wings ordered in my entire life. we're expected to probably sell like close to 1,000 pounds of them. and that's not an exaggeration. >> in this establishment, it's not hard to

they spent the last year plus wasting time on the basel three endgame, which is, for all intents and has a lot to answer for. and frankly, i'm someone who fundamentally believes, like all these other agencies, the fed needs a full and complete audit. so, you know, i have a lot of questions for jerome powell. but moving forward, the question is how they plan to handle, you know, high cost of living. i had a very extensive conversation with jerome powell over a year ago at a breakfast in which we talked about, for instance, the high cost of housing and how that impacts, you know, inflation and everything else. so there's a lot of work ahead. and certainly i'm curious to hear his answers. with a new administration in place, how he plans to handle cost and inflation and where they are with respect to interest rates and having wasted so much time on the basel three endgame. what their plan is moving forward? >> well, congressman, let me ask you about interest rates. obviously interest mortgage rates are too high right now. i say too high. too high for a lot of people to afford a new home.