Not so fast.
That was the message Friday from Federal Reserve Chair Janet Yellen, who warned about rolling back post-financial crisis banking reforms. Her remarks, delivered at a conference for central bankers and other business bigwigs in Jackson Hole, Wyo., flew in the face of the Trump White House’s stated intention to restore a more freewheeling approach to Wall Street oversight.
“A decade has passed since the beginnings of a global financial crisis that resulted in the most severe financial panic and largest contraction in economic activity in the United States since the Great Depression,” Yellen said. “Already, for some, memories of this experience may be fading–memories of just how costly the financial crisis was and of why certain steps were taken in response.”
She later added: “The evidence shows that reforms since the crisis have made the financial system substantially safer.”