The head of the Fedresearch Janet Yellen today spoke at the annual economic symposium held at Jackson Hole.
In her speech, she focused on the regulation of the American banking system. According to Yellen, the change in the existing rules should be moderate and correspond to the main objective. It consists in increasing the financial stability of the country’s large banks.
Yellen noted that the reforms undertaken in the banking sector in recent years have been successful. They have led to a significant increase in stability in the financial system of the United States. However, Janet Yellen allows for some changes in the banking regulation system. It is a current provision that limits the ability of banks to use their own funds in trading operations.
Market participants were expecting comments from the Fed’s head on monetary policy. However, this issue was not addressed in her speech. The market was disappointed. As a result, the dollar fell by 0.4 percent.
Other Fed representatives who spoke at Jackson Hole spoke in favor of starting the decline of the regulator’s assets and another key rate increase by the end of the year.