Exclusive disclosure of the Federal plan. Will the 2008 catastrophe repeat? In the week the Federal Reserve raised interest rates by 25 basis points, amid a series of tough remarks from policymakers such as Mester, Kashkari, and Goolsbee that suggest an additional hike before the end of the year, Reuters revealed—citing informed sources, not an official statement—that the Fed is planning to ease oversight of major banks: raising the asset threshold that triggers strict supervision from $700 billion to about $960 billion, and raising the minimum requirements cap from $100 billion to $150 billion. The official proposal, according to the same sources, is expected later this year and has not yet been finalized.

In other words: the Fed’s monetary arm is restraining the economy, while its supervisory arm is moving to loosen oversight of banks—almost in the same week. This is not a fleeting contradiction, but a direct reflection of a personal philosophy held by the current Federal Reserve Chair, Kevin Warsh, for years.#BitgetBreachForgedRequestsNotStolenKeys