Fed: Big bank leverage rule exemption to expire as scheduled on March 31

The US Federal Reserve announced on Friday that it will be letting the temporary bing bank leverage rule expire by the end of March as scheduled, per Reuters.

The Fed further noted that allowing the rule to expire will not impair the Treasury market liquidity or cause market disruptions.

"The Treasury markets have stabilized, big banks have plenty of capital," the Fed added. "Any changes to the leverage ratio will not erode the overall strength of bank capital requirements."

Market reaction

The S&P 500 Futures erased earlier gains following this headline and was last seen flat on the day at 3,907.