Why did Yellen defend Fed’s regulatory failure?

Source: Investors Business Daily
by staff

“News flash! Janet Yellen just submitted her resignation from the Fed. Well, not exactly. But based on her remarks about post-financial crisis regulation of the banking system, she might as well have. Yellen, speaking at the Fed’s annual conference in Jackson Hole, Wyo., strongly defended the post-2008 financial crisis regulatory response and suggested that it had actually been a boon to the economy, rather than a bane. ‘The balance of research suggests that the core reforms we have put in place have substantially boosted resilience without unduly limiting credit availability or economic growth,’ Yellen told conference attendees. More than one news outlet noted that Yellen’s views are starkly at odds with those of President Trump, who has repeatedly criticized the Dodd-Frank financial reforms for hurting small businesses and crimping credit. Given that Yellen’s time as Fed chair expires in February, her remarks may be tantamount to a resignation.” (08/25/17)