You are here: Home » International » News » Economy
Business Standard

Powell says Fed will not commit to any decision on dividend restrictions

"We have not decided what to do there yet and we're actually looking into that right now," Powell said during a hearing before the Senate Banking Committee

Topics
Jerome Powell | US Federal Reserve | US economy

Reuters 

Jerome Powell, chair of the US Federal Reserve. Photo: Reuters
Jerome Powell, chair of the US Federal Reserve. Photo: Reuters

Federal Reserve Chair Jerome Powell, asked on Tuesday if the Fed would consider reinstating previous capital requirements for financial companies that continued to pay dividends throughout the crisis, said the central bank was still debating the matter.

"We have not decided what to do there yet and we're actually looking into that right now," Powell said during a hearing before the Senate Banking Committee.

Powell said that separately, the Fed has intervened to require banks to limit their dividend growth and share buy backs, which led to higher capital among the largest banks.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, February 23 2021. 21:31 IST
RECOMMENDED FOR YOU
.