Don’t expect a flip-flop on financial reforms, say Fed chief to Trump

WYOMING: Janet Yellen delivered a message to President Donald Trump on Friday, making it clear that if he re-nominates her as Federal Reserve chair she will not turn her back on the raft of US financial reforms that Republicans want to roll back.
Her speech to the world’s top central bankers in Jackson Hole, Wyoming, comes at a time when the chaos at the White House may make it more likely that she would be appointed to serve another four years to head the US central bank.
Yellen, whose term ends in February, warned that “for some” memories of the 2007-2009 financial crisis may be fading, and she said that only “modest” adjustments could be made to regulations meant to protect the economy from runs on banks and other financial panics.
President Trump and congressional Republicans say many of the Obama-era rules go too far in choking off credit and burdening firms with unnecessary compliance.
“Yellen’s passionate defense of the post-crisis tightening of financial regulation isn’t going to go down particularly well at the White House,” said Paul Ashworth, Chief US Economist at Capital Economics, in Toronto. — Reuters