Fed's Kohn on regulatory reform proposals

In testimony 'Regulatory reform proposals' given on 22 June, Donald Kohn of the Federal Reserve said the Federal Reserve Board strongly supports, as its key priorities for regulatory relief, legislative proposals that would authorise the payment of interest on demand deposits and on balances held by depository institutions at Reserve Banks, as well as increased flexibility in the setting of reserve requirements.

"We believe these steps would improve the efficiency of our financial sector, make a

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