Central Banks

Wednesday, January 29, 2020 - 15:24

MNI TRANSCRIPT: Powell on Standards for Supervisory Portfolio


WASHINGTON (MNI) - The following is the portion of a transcript from Federal Reserve Chairman Jerome Powell's press conference after the FOMC meeting Wednesday:

Q: I wanted to ask about a Vice-Chair Quarles recent speech on bank supervision in which he layed out some suggestions for making changes to the supervisory regime. I wanted to ask, do you agree with his approach and are there any plans to codify some of these suggestions later in the year?

A: So, I do agree that the principles that he articulated of firm and fair supervision and effective transparency and communications. I also think it's a good thing that we would have brighter lines to define our list of supervisory portfolio, which we haven't really had to date. Remember that when a firm moves from one portfolio to another, that doesn't mean the level of scrutiny or supervision will change. So, and I also thought that, you know, raising some very interesting questions about, in the first part of the speech, where he's talking about regulation and supervision, and you know how to -- how to balance the desire for transparency and due process in everything the government does with the needs of confidential supervision. It's a very challenging question and one that could use further thought. As far as the specific proposals, you know, they're interested and need further development and will need lots of comment and that sort of thing.

--MNI Washington Bureau; +86 (10) 8532-5998; email: ryan.hauser@marketnews.com

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