"Federal Reserve Considers Overhaul of Bank Capital Rules, Impacting Small Business Loans"

Federal Reserve Chair Jerome Powell indicated that plans to make Wall Street banks hold more capital could be scaled back, signaling a potential regulatory victory for the banking industry. Powell's comments threw into doubt a signature Biden-era regulatory effort, highlighting the significant influence of the banking industry in Washington. The proposed capital rule, tied to the Basel III international overhaul, has faced fierce lobbying from industry groups and could undergo broad changes following Powell's remarks. The political stakes are high with November's elections looming, and the industry looks set to break its own annual profit record in 2023.