Federal Reserve Chairman Janet Yellen defends the rules on finance that, after the Wall Street crisis, "made the system substantially safer" and her personal legacy, speaking of "important progress" on the US central bank's goals. . No comment on monetary policy but an indirect warning to President Donald Trump who promised to ease the grip of regulation on Wall Street. “The events of the crisis made it necessary to intervene. The reforms have strengthened our financial system and increased its resilience, ”Yellen noted. However, he added, “I expect that the evolution of the financial system in response to economic trends, technology and regulation will sooner or later re-emerge those all too well known risks of excess optimism and leverage, in new forms. which will require a response. The Fed chairman therefore rejected the argument of those who, like Trump, argue that the rules have held back the activity of banks, insisting that capital requirements have indeed promoted credit growth. He did not rule out the need for adjustments, as in the case of the Volker Rule, the law banning US commercial banks from speculative trading, which could be simplified. “Any adjustment to the regulatory framework should be modest and preserve the increased resilience associated with the reforms implemented in recent years. “We can never be sure that a new crisis will not occur but if we keep the lesson fresh in our minds we have reasons to hope that the financial system and the economy will face fewer crises or recover from any risks faster.
The President of the Federal Reserve, JanetYellen then "sent" a message to President Donald Trump and the Republican majority Congress: "if you intend to keep me at the helm of the Fed, do not expect an abolition of the post-crisis rules". Yellen's tenure at the helm of the Fed expires in February, and it's unclear whether Trump wants to uphold it or not. Also in the running is Gary Cohn, the White House economic adviser and former president of Goldman Sachs.