No comment on Fed chair future
- Wants to preserve the benefits of stress testing
- There is room to address the burden of the Volcker Rule that is put on some firms
- Wants to preserve gains from core of post-crisis reform
- Almost time on removing qualitative test from stress testing on large banks
- Regulators have significant flexibility in refining Volcker rule even for larger banks
- Better tailoring of financial rules a top priority for the central bank
Powell's comments are not focused on monetary policy but points toward regulatory reform that would lower the burden on banks now that they are better capitalized. That is good for banks and bank stocks.
