The Federal Reserve is set to announce a series of changes aimed at easing capital requirements for large banks, with an emphasis on boosting lending, particularly in the mortgage sector. Vice Chair for Supervision Michelle W. Bowman indicated that regulators will vote on the revised capital rules soon, which are expected to decrease the capital requirements by a small margin. This move has been positioned as a necessary step to encourage banks to resume home lending, reflecting a broader regulatory shift that may have implications for significant assets on bank balance sheets. The announcement follows a response from banking trades to previous comments made by Bowman regarding Basel III regulations, which have sparked considerable debate within the financial industry. Key changes are anticipated in Basel rules, with the aim of providing a more streamlined approach to risk-based capital calculations. As the Federal Reserve prepares to release these relaxed capital rules, the impact on the banking sector and the broader economy will be closely monitored.