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Fed chairman nominee Powell defends push to review financial regulations

Tuesday, November 28, 2017 - 01:31

Federal Reserve chairman nominee Jerome Powell said during his confirmation hearing he supports rate hikes, reduction of the Fed's balance sheet, and deregulation. Fred Katayama reports.

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Federal Reserve chair nominee Jerome Powell went to Capitoll Hill for his confirmation hearing. He said the U.S economy is strong, and he supports gradual interest rate hikes and a reduction of the Fed's balance sheet. He also said he expects 2017 and 2018 GDP growth of about 2.5 percent. Powell signaled he wants to review financial regulations implemented after the financial crisis. (SOUNDBITE) (English) FEDERAL RESERVE SYSTEM, CHAIR NOMINEE, BOARD OF GOVERNORS, MEMBER, JEROME H. POWELL, SAYING: "The things that we've done - higher capital, higher liquidity, stress testing resolution - I think those are important pillars of reform. We can make them more transparent, more efficient and that sort of thing. I think other things we can do is more tailoring and that's really what we're involved in right now, but, generally speaking, as I said, I think the financial system is quite strong." Over the course of the roughly two-hour hearing, none of the senators voiced opposition to Powell. Democrats questioned whether he would coddle Wall Street. Republicans wondered if the Fed would go far enough in lightening the burden on financial businesses. PAAMCO senior credit strategist Putri Pascualy. (SOUNDBITE) PUTRI PASCUALY, SENIOR CREDIT STRATEGIST AND PORTFOLIO MANAGER, PAAMCO (ENGLISH) SAYING: "We should expect more of the same and hopefully a steady hand when it comes to monetary policy how it can. However when it comes to regulation, especially when it comes to financial services, I think we should expect new a new wind to blow into the Fed." No vote has been scheduled yet, but Powell is expected to win confirmation before chair Janet Yellen's term expires in early February.

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Fed chairman nominee Powell defends push to review financial regulations

Tuesday, November 28, 2017 - 01:31