The Federal Home Loan Banks say the supervisory haircut federal regulators proposed applying to their consolidated obligations when held as collateral is too large and may impair pricing and liquidity.
Most analysts say that higher inflation means rate cuts are off the table for Fed Chair Kevin Warsh, even though President Trump still says he still wants lower rates.
Urban Institute researchers say the mortgage industry will experience slightly better capital treatment as a result of the changes to the Basel III Endgame, but they recommend some improvements.