Trump has made deregulation a key part of his financial agenda and repeatedly blamed the 2010 Dodd-Frank Act, which was designed to prevent another financial meltdown, for stifling economic growth.
But Yellen warned last month that policymakers should not ignore the lessons from the 2008 financial crisis that hit the U.S. economy and households hard.
Any changes to the post-crisis financial reforms should be "modest" as these reforms have made the financial system substantially safer and resilient, she said.
BALANCE SHEET UNWINDING
The Fed announced last week that it would start a program in October to gradually unwind its 4.5-trillion-U.S.-dollar balance sheet, a well-telegraphed move to withdraw its record monetary stimulus since the financial crisis.
The process of unwinding the balance sheet will work similar to a tightening monetary policy leading to an increase in interest rates. But markets haven't reacted much as the Fed's plan was initially outlined in June and it would unfold very gradually.
"I think they're making the right move by sort of doing this in an automatic way," Posen said, expecting the Fed's balance sheet to shrink meaningfully over the next two years.
While global growth rate has come down to around 3 percent from 5 percent before the financial crisis, Posen believed the global economy is really "in better shape" to handle the Fed's monetary policy tightening.
【国际英语资讯:Interview: Trumps reshaping of Fed could end up with more dovish policy stance: U.S. econo】相关文章:
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