Here Are 5 Things To Watch For In Yellen’s Speech To The Financial Services Committee
Fed Chairwoman Janet Yellen stands before the House Financial Services Committee Wednesday to testify about financial regulation, and while many of the questions she’ll receive will likely deal with the Fed’s oversight of banks, here are the main things, according to the Wall Street Journal, we can expect Yellen to be quizzed about:
1. Stress Tests: The Fed made major changes to its stress testing doctrine Monday, changes that may make it easier to pass for regional banks but harder for megabanks.
2. Commodities Business: Last week the Fed proposed new rules to regulate banks’ commodity-market businesses, citing risks the banks could face should there be an environmental disaster.
3. Executive Compensation, Wells Fargo: Republicans will likely ask why the Fed didn’t do more to combat the type of misconduct that occurred at Wells Fargo, while Democrats could push her to finalize incentive pay rules quickly.
4. Monetary Policy: It’s likely the Fed’s decision to hold interest rates steady despite hinting at a possible hike in the near future will be a topic of discussion.
5. Presidential Election: With Donald Trump’s recent comments, accusing the Fed of keeping rates low to benefit Hillary Clinton, Yellen may face more questions regarding her public impartiality. [WSJ]