Fed's Yellen Defends Postcrisis Regulations in Jackson Hole

JACKSON HOLE, Wyo. -- Federal Reserve Chairwoman Janet Yellen defended the sweeping financial regulations enacted in the wake of the financial crisis that began a decade ago, while keeping the door open to modest changes to the postcrisis rules.

"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," Ms. Yellen said Friday in a speech prepared for delivery at the U.S. central bank's annual late-summer retreat in Grand Teton National Park.

But, she added, the Fed is "committed to evaluating where reforms are working and where improvements are needed to most efficiently maintain a resilient financial system."

For the third time in four years, Ms. Yellen delivered the opening address at the economic policy symposium, which is hosted by the Federal Reserve Bank of Kansas City. The theme of this year's conference is "Fostering a Dynamic Global Economy."

It could be her final appearance at the Jackson Lake Lodge as the Fed's leader, since her term is up in early February. President Donald Trump has said she is among the candidates he is considering for the post; another is Mr. Trump's National Economic Council director, Gary Cohn. The job requires confirmation by the Senate, where Republicans hold a slim majority.

The Trump administration has made rolling back federal regulations a priority, and Republicans have long been critical of the 2010 Dodd-Frank financial overhaul law enacted in the wake of the 2007-09 crisis and recession.

"I have so many people, friends of mine, that had nice businesses. They can't borrow money," Mr. Trump said in February. "They just can't get any money because the banks just won't let them borrow it because of the rules and regulations in Dodd-Frank."

(MORE TO COME)

Write to Ben Leubsdorf at ben.leubsdorf@wsj.com and Kate Davidson at kate.davidson@wsj.com

(END) Dow Jones Newswires

August 25, 2017 10:15 ET (14:15 GMT)