Yellen Advocates for Continued Financial Resilience in Post-Crisis Era

U.S. Treasury Secretary Janet Yellen emphasized the need for ongoing efforts to ensure a robust financial system. Speaking at a Treasury markets conference, Yellen criticized the Trump administration for weakening financial stability measures and stressed the importance of regulations like Dodd-Frank in maintaining the economy's strength and resilience.

U.S. Treasury Secretary Janet Yellen called for continued efforts to ensure a resilient financial system during her speech at a Treasury markets conference in New York on Thursday. She urged the pursuit of thoughtful regulation and opposed the rollback of bank capital requirements.

Yellen noted that reforms implemented after the 2007-2009 financial crisis have helped the system withstand turbulence, including the COVID-19 pandemic and recent regional bank issues. She criticized the Trump administration for weakening financial stability measures, leaving the Financial Stability Oversight Council significantly under-resourced by the time she took office in 2021.

Yellen emphasized the importance of maintaining a resilient financial system to support the economy, advocating for appropriate regulation despite opposition. She highlighted the necessity of addressing core weaknesses revealed by 2023 banking stresses and urged greater supervisory focus on banks with less stable deposits.

(With inputs from agencies.)