Fed plans to tighten commodities rules for banks, says governor

New York

THE US Federal Reserve is preparing to unveil new restrictions aimed at making it harder for Wall Street banks to make big bets in the commodities markets, according to testimony from Fed governor Daniel Tarullo.

Mr Tarullo struck an unexpectedly aggressive stance in his appearance on Friday in front of a Senate subcommittee that has been investigating the involvement of big banks in the markets for basic materials like coal, aluminium and gas.

Mr Tarullo said the Fed expected to issue a formal notice of potential new rules in t…