On June 23, the Ranking Member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, Sen. Elizabeth Warren (D-MA), penned a letter raising concerns over reports that the Fed, the FDIC, and the OCC intended to soon ease the enhanced supplementary leverage ratio, a key post-2008 safeguard.

The senator warned that the Fed’s most recent financial stability report showed symptoms of a weakening economy, including growing corporate debt, rising consumer credit delinquencies, and looming defaults amid refinancing challenges. The senator further highlighted that multiple financial institutions have warned of an elevated recession risk, and financial resilience was recently tested by substantial volatility in the Treasury market following the Trump administration’s trade announcements. Finally, Sen. Warren posited that if President Trump and Secretary Bessent were interested in improving the Treasury market, they would first abandon economic policies stoking bond market concerns and build on reforms to increase transparency, broker dealer registration requirements, and central clearing.