Bank lending is jet fuel for the U.S. economic engine. It is one of the primary sources of capital enabling companies to expand and consumers to obtain loans for homes and cars. But, the Federal Reserve is pushing a measure that would needlessly cut into lending by forcing banks to hold more capital in reserve. Every excess dollar parked in reserve means many fewer dollars lent out to businesses or consumers through the magical “multiplier effect” of banks using customer deposits to make loans. 

That loss in lending power translates into fewer jobs and lower incomes for workers, who continue to suffer after years of sluggish economic growth.