Federal Reserve Board Chairman Jerome Powell testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill February 27, 2018 in Washington, DC.

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Federal Reserve Board Chairman Jerome Powell testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill February 27, 2018 in Washington, DC.

The Federal Reserve on Tuesday proposed new capital rules that could allow some large banks to reduce their capital reserves.

The proposal may clear the way for some large banks to reduce their capital levels in the future but the largest Wall Street banks are not likely to get such relief, the Fed said.

“Relative to current requirements, the proposed changes would generally maintain or somewhat increase the amount of capital required for GSIBs and generally decrease modestly the amount of capital required for most non-GSIBs,” the Fed said referring to 30 global systemically important banks.

Banks and other stakeholders will have 60 days to comment on the proposal that is likely to take effect next year, said the Federal Reserve.

The new capital standards would be the first reform of capital standards conceived after the decade-old financial crisis.

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