The Federal Reserve’s vice chair doesn’t think Dodd-Frank regulations will be fully repealed
Dodd-Frank financial regulation legislation may be adjusted rather than repealed altogether, US Federal Reserve vice chair Stanley Fischer said in a speech today at a Warwick University economics summit.
"There are many aspects that are extremely important," Fischer said. "Significantly reducing capital requirements would reduce the safety of the system. I would certainly hope it's not going to happen."
President Donald Trump plans to ease reforms put in place after the 2008 to 2009 financial crisis.
Dodd-Frank rules, which were passed in 2010, include requirements for banks to maintain higher amounts of capital.
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Fischer said adjustments to the regulatory rules could include being less demanding on community banks.
Analysts have said the UK and the rest of Europe could come under pressure to loosen financial services regulations, following Trump's plans to cut back Dodd-Frank.
Yesterday, the Federal Reserve board's top bank regulator, Daniel Tarullo, said he will resign, according to Reuters.
Fischer also said the Fed will stick to its targets of creating full employment and getting inflation to two per cent despite uncertainty about US fiscal policy under Trump's administration
"There is quite significant uncertainty about what's actually going to happen, I don't think anyone quite knows. It's a process which involves both the administration and the congress in deciding fiscal policy," Reuters reported Fischer saying in response to a question.
"At the moment we're going strictly according to what we see as our responsibility according to the law, which is maintaining full employment and getting inflation to two per cent."
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