Online reports that the Federal Reserve has unveiled its proposal to relax an important capital rule that large banks have previously said limits their ability to hold more U.S. Treasuries and act as intermediaries in the $29 trillion market. The Federal Reserve voted on Wednesday local time to propose changes to the so-called enhanced supplementary leverage ratio (ESLR), which applies to large U.S. banks such as Bank of America, JPMorgan Chase and Goldman Sachs Group. The Federal Reserve proposes to reduce the capital requirements for holding companies based on this ratio from the current 5% to the range of 3.5% to 4.5%, and for its banking subsidiaries it will reduce the requirement from 6% to the same range. Federal Reserve Chairman Powell said that given the significant increase in the size of relatively safe assets on banks 'balance sheets, it is prudent for the Federal Reserve to reconsider relevant rules. The statement showed that Federal Reserve Governors Barr and Kugler opposed the proposed reforms. Federal Reserve Governor Bowman said that the adjustment measures will enhance the resilience of the U.S. Treasury bond market and reduce market imbalances.