Federal Reserve Governor Lael Brainard on Tuesday said she supports updating banking regulations to help credit flow to low-income areas. The comments by Brainard - the only members of the Fed's Board of Governors nominated by former U.S. President Barack Obama - come after the Trump administration proposed on April 3 that regulators relax penalties for banks that fail to meet their obligation to lend to low-income communities. The administration's proposal would change how regulators - including the Federal Reserve - would implement the decades-old Community Reinvestment Act (CRA), which requires banks extend mortgages and other types of credit to low-income communities where they take deposits.
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