The Federal Reserve’s point-person on Wall Street appealed to Congress on Monday to “do no harm” as the item considers slicing back regulations put in place to protect the U.S. economy inside the wake of the financial crisis.
fresh York Fed President William Dudley, who announced Monday morning he would likely retire earlier than expected in mid-2018, said that will while there were some rules that will could be adjusted the main tenets of stronger capital, liquidity in addition to clearing standards must be protected.
U.S. President Donald Trump in addition to the Republican-controlled Congress aim to loosen requirements on banks in addition to financial markets in general to free up capital flow in addition to encourage economic growth. yet Dudley in addition to some other regulators have warned not to go too far in revamping rules in addition to laws put in place to avoid a repetition of the 2007-2009 crisis in addition to deep recession.
“As we reflect on potential adjustments to the U.S. regulatory regime, we should not lose sight of the horrific damage caused by the financial crisis, including the worst recession of our lifetimes in addition to millions of people losing their jobs in addition to homes,” said Dudley, 64, a close ally of outgoing Fed Chair Janet Yellen.
“We had a woefully inadequate regulatory regime in place, in addition to while the item can be much better today, there can be still work to do,” he added at the Economic Club of fresh York. “We should finish the job as quickly as possible, in addition to we should do no harm as we adjust our regulatory regime to make the item more efficient.”
Dudley, among the most influential members of a central bank inside the midst of a sweeping leadership overhaul, did not comment on monetary policy in his prepared remarks. Nor did he mention retirement coming from the fresh York Fed, which serves as the central bank’s eyes in addition to ears on Wall Street.