Fed’s Fischer: ‘Successful reforms can breed complacency about risks’

It would be a mistake to believe that financial crises are at an end, Fed Vice Chairman Stanley Fischer said Monday.  Fischer said it’s unclear if we’re in secular stagnation or a debt supercycle, and warned against complacency bred from financial stability.

“We should not make the mistake of believing that we have put an end to financial crises,” he said at the International Monetary Conference in Toronto. “One reason we should worry about future crises is that successful reforms can breed complacency about risks.”

Fischer also warned against “bankers’ backlash,” but said opposition to regulation is “making headway.”  “But often when bankers complain about regulations, they give the impression that financial crises are now a thing of the past, and furthermore in many cases, that they played no role in the previous crisis,” he said.