Powell to pledge regulatory relief for banks that protects benefits of Dodd-Frank
Federal Reserve Chairman nominee Jerome Powell will tell lawmakers Tuesday that he’ll aim to strike a balance between preserving key financial regulations and reducing their burden on smaller firms.
Powell, a Fed governor, will appear before the Senate Banking Committee on Tuesday morning, which will consider his confirmation to lead the Fed. His prepared testimony before the panel, released Monday, reflects the moderate stance Powell, a Republican who’s favored loose monetary policy and slight rollbacks to financial rules, is expected to bring to the Fed.
“We must help ensure that our financial system remains both stable and efficient. Our financial system is without doubt far stronger and more resilient than it was a decade ago” the testimony reads.
Powell will pledge that the Fed will “continue to consider appropriate ways to ease regulatory burdens while preserving core reforms”so “banks can provide the credit to families and businesses necessary to sustain a prosperous economy.”
Powell will also say the bank “must be clear and transparent about the principles that are driving our decisions and about the expectations we have for the institutions we regulate.”
Powell was nominated by President Trump last month to replace current Fed Chair Janet Yellen.
He had been considered Trump’s favorite to succeed Yellen, who will leave the bank in February, for roughly a month. Multiple outlets had reported Trump’s preference for Powell, who’s seen as a slight step to the right of Yellen.
Yellen and Powell have both supported a slow, steady increase in interest rates toward historic averages. The two were among several Obama Fed appointees who argued that increasing interest rates too quickly could stifle the recovery from the 2008 recession.
Powell has also called for moderate fixes to the Dodd-Frank Act that have wide bipartisan support among regulators, including Yellen. A former lawyer and investment banker, Powell had overseen the Fed’s financial regulatory efforts until the confirmation of Randal Quarles as the bank’s vice chairman of supervision.
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