The Fed "will be heightening its focus on liquidity, credit, and interest-rate risks as supervised institutions manage the changing financial conditions," Barr said in written testimony prepared for delivery Tuesday to the Senate Banking committee, noting that the U.S. economic outlook has weakened "amid tighter financial conditions and increased uncertainty."
Barr's comments come as the Fed tightens monetary policy more aggressively than it has in 40 years as it battles too-high inflation by trying to slow the economy and take the heat out of labor markets. Barr used his speech to lay out a set of priorities for regulation that includes bank capital requirements, bank mergers, and cryptocurrencies.
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