Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Fed officials call for tougher regulation to prevent asset bubbles - FT

share with twitter share with LinkedIn share with facebook
10/17/2020 | 02:44pm EDT

Oct 17 (Reuters) - Tougher U.S. financial regulation is needed to avoid the rise of excessive risk-taking and asset bubbles in the markets at a time when the Federal Reserve is keeping interest rates low, two senior Fed officials told the Financial Times in an article published on Saturday https://on.ft.com/3kesfsU.

Boston Fed President Eric Rosengren told the newspaper that the Fed lacked sufficient tools to prevent companies and households from taking on "excessive leverage" and called for a rethink on issues related to U.S. financial stability.

"If you want to follow a monetary policy ... that applies low interest rates for a long time, you want robust financial supervisory authority in order to be able to restrict the amount of excessive risk-taking occurring at the same time," the FT quoted him as saying.

"(Otherwise) you're much more likely to get into a situation where the interest rates can be low for long but be counterproductive," Rosengren said.

Minneapolis Federal Reserve President Neel Kashkari said there was a need for stricter regulation to avert repeated interventions in the market by the Fed.

"I don't know what the best policy solution is, but I know we can't just keep doing what we've been doing," he told the newspaper.

"As soon as there's a risk that hits, everybody flees and the Federal Reserve has to step in and bail out that market, and that's crazy. And we need to take a hard look at that," he said.

Neither Rosengren nor Kashkari were immediately available to comment on the article published on Saturday. (Reporting by Kanishka Singh Editing by Sonya Hepinstall)


share with twitter share with LinkedIn share with facebook
Latest news "Economy & Forex"
02:25pAPI AMERICAN PETROLEUM INSTITUTE : Publishes Suite of New Standards Focused on Offshore Crane Safety
PU
02:24pWall Street shares bolstered by stimulus bets
RE
02:20pBOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM : Agencies finalize rule to reduce the impact of large bank failures
PU
02:17pUK Government Threatens To Take Direct Control Of Transport For London - FT
RE
02:15pEUROPEAN UNION : UNDP and EIB expand partnership to support governments in tackling global crisis
PU
02:14pGoldman Sachs sends some London staff home following positive tests for COVID-19
RE
02:10pRENEWABLE ENERGY : Announces Planned Expansion of Geismar Renewable Diesel Plant to 340 Million Gallons per Year
PU
02:09pGold firms on easing dollar, U.S. stimulus bets
RE
02:07pSingh says pmccf hasn't been accessed because markets are functioning extremely well
RE
02:05pSingh says primary corporate credit facility stands ready for situations of market deterioration
RE
Latest news "Economy & Forex"