The Indicator from Planet Money · Tuesday, August 11, 2026
The Federal Reserve possesses a tool to control the amount of money investors need to borrow for margin trades, a requirement not adjusted since 1974. This could involve increasing the minimum capital an investor must have to borrow money, thereby slowing down the accumulation of new debt in the stock market.
“The Federal Reserve can do something about this. At least when it comes to margin debt. The bank has a little known job. The bank essentially tells investors how much money do you need in your pocket to borrow a dollar.”
“The Fed has not touched these loan requirements since 1974. Still, we wondered if now was a good time to revisit this requirement and break out a tool it hasn't used in decades. This would slow down the amount of new debt in the stock market.”