Even as Federal Reserve Chair Jerome Powell predictably dodged the latest question over his future as head of the central bank, his signal of openness to Democratic demands for tougher regulation of Wall Street under a new regulatory chief may assuage what critics see as a weak point in his leadership.
At a press conference on Wednesday following the Fed's latest meeting at which policymakers kept interest rates near zero as the U.S. economy continues to heal from the COVID-19 pandemic, Powell was unequivocal when asked how much he would defer to a new vice chair for supervision expected to be named this fall to oversee bank regulation.
The public declaration could work in his favor given Powell, a former private equity executive and investment banker, has been regarded by some as too close to Wall Street and insufficiently tough on banks as he and current Vice Chair Randal Quarles, voted to ease regulations. But headaches, such as the revelation last week that two Federal Reserve regional bank presidents had engaged in controversial stock trades, leave little room for major error, particularly as Democratic Senator Elizabeth Warren, a key lawmaker, has demanded swift action to establish new ethics rules that would bar such dealings in the future.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed signals plan to pull back economic support even as virus loomsThe Federal Reserve signaled it's on track to begin withdrawing some of its support for the U.S. economy later this year, even as the resurgent coronavirus weighs on the country
Read more »
Fed's Powell: 'no one' happy with fellow policymakers' tradingU.S. Federal Reserve Chair Jerome Powell said on Wednesday he was displeased with the active investing carried out by two Fed regional bank presidents and pledged the central bank's ethics rules will be tightened after a thorough review.
Read more »
Lake Powell could stop producing energy in 2023 as water levels plungeThe Bureau of Land Management projects a 34% chance that Lake Powell's water levels will fall below the minimum level necessary to generate power in 2023.
Read more »
Fed ‘dot plot’ signals higher U.S. interest rates in 2022, but Powell warns it’s not set in stoneThe Federal Reserve could raise interest as rates as soon as 2022 --- much sooner than previously expected --- but it's likely to be a close call.
Read more »
Fed opens overnight repo spigot as Wall Street stares down barrel of U.S. debt-ceiling fightMoney-market funds and other financial firms can now park up to $160 billion overnight each at the Federal Reserve Bank in New York’s reverse repurchase program, double what was allowed under the earlier cap.
Read more »
Federal Reserve seen more ‘hawkish’ as Powell tees up tapering, but the market signals economic growth concernsInvestors were ready for the Federal Reserve to tee up a possible announcement of a tapering of its bond purchases in November in its policy statement...
Read more »