Quarles defends decision to set countercyclical buffer at zero
But there may still be disagreement within the Fed’s ranks
Maintaining the Federal Reserve’s countercyclical capital buffer (CCyB) at zero is appropriate given that financial stability risks are within their normal levels, vice-chair for supervision Randal Quarles said in a speech on April 29.
Quarles said while asset valuations have eased from the upper end of historical levels seen last year, high corporate debt and deteriorating underwriting standards could potentially create vulnerabilities during a downturn in economic growth. These
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