'FAILURE OF SUPERVISION': Fed insider delivers BLUNT verdict on SVB collapse

• Fed proposes easing capital requirements for major banks to free up capital and boost lending in areas like mortgages and small business loans.
• Bowman expects strong economic growth in 2026 and has 'written in three cuts' for interest rates before year-end.
• The Fed is actively monitoring risks from private credit, AI investments, and global bond market leverage, learning from past events like the Silicon Valley Bank failure.

Federal Reserve Vice Chair Michelle Bowman discussed the Fed's new proposals to modernize bank capital requirements, aiming to ease rules for major banks and encourage lending across various sectors. She expressed optimism for strong economic growth in the coming year, supported by supply-side policies and anticipated interest rate cuts. Bowman also addressed concerns regarding private credit, AI investment, and global market leverage, emphasizing the Fed's ongoing monitoring and commitment to tailored, transparent oversight.