The Procrustean Bed the SLR Wrought
On Wednesday, Jay Powell evinced an unusual bit of well-bred frustration, refusing to answer a reporter’s question about the fate of the supplementary leverage ratio (SLR) exemption.  No wonder – nothing upsets any of us more than avoidable mistakes.  The fault at the Fed is not in the contentious SLR exemption with which the Fed has now dispensed, but in that the Fed put itself into this excruciating no-escape box due to the cumulative, unintended consequences of its ever-more complex monetary and regulatory actions.