Yellen defends financial regulation as Donald Trump looks to repeal Dodd-Frank

 
Helen Cahill
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Fed Chair Janet Yellen Testifies At Senate Hearing On Semiannual Monetary Policy Report To Congress
Yellen had little to say on monetary policy (Source: Getty)

Federal Reserve chair Janet Yellen has given a robust defence of the regulations introduced after the financial crash in an attempt to sway lawmakers looking to row back on the Dodd-Frank laws.

Speaking at Jackson Hole, Wyoming, at an annual conference of economists and central bankers, Yellen defended the Dodd-Frank measures set up after the 2008 crash, rules US President Donald Trump has slammed as a "disaster".

Read more: Dodd-Frank rewrite edges closer after US lawmakers advance bill

Trump is hoping to backtrack on the Dodd-Frank regulation, believing it has stunted America's economic prosperity.

Yellen said:

The balance of research suggests that the core reforms we have put in place have substantially boosted resilience without unduly limiting credit availability or economic growth.

Choosing to pitch her comments at US lawmakers, Yellen's speech had little to say on monetary policy. At time of writing the pound was up 0.61 per cent against the dollar at $1.2879.

Chris Beauchamp, chief market analyst at IG, said: "Janet Yellen has given the dollar a shove lower in her speech, but a lack of hawkish commentary and no excursions into the realms of monetary policy will leave dollar bulls disappointed."

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