Fed Chair Defends US Financial Rules at Jackson Hole

Federal Reserve Chair Janet Yellen defended financial rules introduced to the US after the 2008 financial crisis at a widely anticipated speech in Wyoming on Friday.

Her words come as the Trump administration has said it hopes to roll back some banking rules.

Ms Yellen said the bank was open to changes but they should remain modest.

European Central Bank President Mario Draghi is also scheduled to speak.

“The evidence shows that reforms since the crisis have made the financial system substantially safer,” Ms Yellen said in her remarks.

Critics, who include many prominent Republicans, say the banking regulations have hurt economic growth and limited lending.

Ms Yellen, whose term is due to expire early next year, rejected those arguments, while conceding that some areas could be improved.

The Federal Reserve is looking at changes to ease regulations for smaller banks, she said.

There may also be benefits to modifying the so-called Volcker Rule, which limits the ability of large banks to trade with their own money, she added.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza