“The work to build and maintain a resilient financial system It never ends. We will never be able to simply declare victory,” Yellen said at the conference organized by the Federal Reserve Bank of New York.
“A resilient financial system is critical to a strong economy. And strengthening it requires insisting on thoughtful regulation, even in the face of challenges from those who advocate rolling back policies and regulations,” he added.
Yellen blamed Donald Trump’s former administration for letting the focus on financial stability deteriorate, leaving the decade-old Financial Stability Oversight Council (FSOC) “severely weakened” when she took office in 2021. , with staff reduced to single digits and coordination between agencies reduced.
“Simply put, we were left without crucial tools to identify and help respond to risks to financial stability. This meant that we faced a greater likelihood that the risks would materialize in negative impacts on American households and businesses.” , said.
Yellen said she has worked to rebuild FSOC’s capabilities to ensure the financial system can serve businesses and households and support prosperity.
This included focusing on safe and sound financial institutions, public financial market services, central clearing counterparties, and investor and consumer protections.
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