In Choice of Fed Chairman, Trump Downgrades Deregulation
- 7 years ago
In Choice of Fed Chairman, Trump Downgrades Deregulation
“There are some ideas in the report that make sense, maybe not as expressed there,
but it would enable us to reduce the cost of regulation without affecting safety and soundness.” But, he added, “There are some ideas that I would not support.”
Since joining the Fed in May 2012, Mr. Powell has voted in favor of every action to tighten regulation the Fed has undertaken.
Karen Shaw Petrou, managing partner at Federal Financial Analytics, which tracks regulatory issues for financial industry clients, said
that she expected Mr. Powell would defer to Mr. Quarles.
Choosing Mr. Powell would reflect a judgment by the Trump administration
that it can loosen Wall Street’s chains even without the enthusiastic participation of the next Fed chairman.
He has said that banks were allowed to take too many risks before the crisis and, in a 2015 interview,
he said he had “no problem” with requiring the biggest banks to raise more capital after the crisis.
Jerome H. Powell, the Fed governor whose candidacy is said to be backed by Treasury Secretary Steven Mnuchin, participated in the construction of the current rules,
and he has defended the bulk of the changes made after the 2008 financial crisis as necessary safeguards for the broader economy.
“Senator Scott is looking for fresh leadership at the Federal Reserve,
and Mr. Powell would have to answer serious concerns both old and new at any potential nomination hearing he might have before the Senate Banking Committee,” said a spokesman for Senator Tim Scott, a South Carolina Republican who voted against Mr. Powell’s confirmation.
“Regulatory policies enacted since the financial crisis have improved the safety and soundness of the financial system,” Mr. Quarles said.
“There are some ideas in the report that make sense, maybe not as expressed there,
but it would enable us to reduce the cost of regulation without affecting safety and soundness.” But, he added, “There are some ideas that I would not support.”
Since joining the Fed in May 2012, Mr. Powell has voted in favor of every action to tighten regulation the Fed has undertaken.
Karen Shaw Petrou, managing partner at Federal Financial Analytics, which tracks regulatory issues for financial industry clients, said
that she expected Mr. Powell would defer to Mr. Quarles.
Choosing Mr. Powell would reflect a judgment by the Trump administration
that it can loosen Wall Street’s chains even without the enthusiastic participation of the next Fed chairman.
He has said that banks were allowed to take too many risks before the crisis and, in a 2015 interview,
he said he had “no problem” with requiring the biggest banks to raise more capital after the crisis.
Jerome H. Powell, the Fed governor whose candidacy is said to be backed by Treasury Secretary Steven Mnuchin, participated in the construction of the current rules,
and he has defended the bulk of the changes made after the 2008 financial crisis as necessary safeguards for the broader economy.
“Senator Scott is looking for fresh leadership at the Federal Reserve,
and Mr. Powell would have to answer serious concerns both old and new at any potential nomination hearing he might have before the Senate Banking Committee,” said a spokesman for Senator Tim Scott, a South Carolina Republican who voted against Mr. Powell’s confirmation.
“Regulatory policies enacted since the financial crisis have improved the safety and soundness of the financial system,” Mr. Quarles said.