Janet Yellen wants to keep postcrisis rules Donald Trump seeks to undo – Donald Trump Sucks

Janet Yellen wants to keep postcrisis rules Donald Trump seeks to undo – Donald Trump Sucks



Fed
Chair Janet Yellen with the European Central Bank president Mario
Draghi.

Reuters / David
Stubbs


Federal Reserve Chair Janet Yellen had a clear message for the
Trump administration Friday in what could be her final Jackson
Hole speech: Undoing the hard work of overhauling the financial
system after the financial crisis could have dangerous
consequences.


Yellen has previously defended the post-2008-meltdown Dodd-Frank
legislation
that the Fed, under her leadership, has been
charged with implementing. She credits the changes with greatly
strengthening the US financial system by forcing banks to raise
capital and shed riskier assets.

In her keynote address Friday at the high-profile Jackson Hole
conference in the Grand Teton mountains of Wyoming, Yellen was
not holding back — in a way suggesting she is not holding her
breath for a reappointment from President Donald Trump. Yellen’s
term as Fed chair expires in February,
and Trump is widely expected to nominate Gary Cohn
, the
former Goldman Sachs president who now leads Trump’s National
Economic Council, to replace her.

“Fed Chair Janet Yellen’s passionate defence of the post-crisis
tightening of financial regulation isn’t going to go down
particularly well at the White House,” wrote Paul Ashworth, an
economist at Capital Economics, in a research note following the
speech. “Donald Trump has made rolling back regulation the
centre-piece of his presidency.”

Cohn has argued that the new regulations have been harmful to
bank lending and the economy.

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