Yellen: Fed ‘actively looking’ for reg relief options
Federal Reserve Chair Janet Yellen yesterday told lawmakers she is “actively looking” for ways to decrease the regulatory burden for smaller financial institutions.
“We are actively looking for ways that we can safely diminish burdens particularly on community banks” and other smaller financial institutions, Yellen said in response to a question from Rep. Denny Heck, D-Wash., during a hearing held by the House Financial Services Committee focused on Fed rulemaking and supervision.
Heck was joined by Reps. Rubén Hinojosa, D-Texas, and Robert Pittenger, R-N.C. in emphasizing the need for more regulatory relief for small financial institutions.
Yellen also fielded questions from Rep. Brad Sherman, D-Calif., on the potential impact of an increase in the federal funds target rate on mortgage rates. Sherman discouraged a rate increase this winter, but Yellen said the Fed was “very aware” of the potential impact and that the pace of an increase would be gradual.continue reading »