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 | 08:01pm 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.

A representative of the Boston Federal Reserve confirmed Rosengren's remarks made to the Financial Times, adding he was interviewed on Oct. 8. Kashkari was not 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"
05:39aGerman economy grew by 6% in third quarter but recovery likely to slow - DIW
RE
05:39aOil in reverse as rise in U.S. crude stocks fans oversupply fears
RE
05:38aNext upgrades profit forecast on better-than-expected third quarter sales
RE
05:30aInvestment bank lifts Deutsche to surprise quarterly profit
RE
05:30aGermany's diw says economic output will likely increase slightly towards end of year, but strong recovery seen in summer is unlikely to continue
RE
05:30aGerman economic institute diw says economy likely grew by around 6% in q3
RE
05:29aEuro dips on French lockdown fears, U.S. vote drives volatility gauges up
RE
05:25aEMEA FX sinks, Turkey's lira plunges to another record low
RE
05:24aEuro dips on French lockdown fears, U.S. vote drives volatility gauges up
RE
05:22aZambia agrees with China Development Bank to defer debt repayments
RE
Latest news "Economy & Forex"