Why the Fed chair needs to care about financial regulation

The writer is former Chair of the FDIC and former Assistant Secretary of the U.S. Treasury for Financial Institutions.

Federal Reserve Board Chairman Jay Powell delivered a masterful speech on Friday to the annual Economic Policy Symposium sponsored by the Federal Reserve Bank of Kansas City. He focused almost exclusively on the Fed’s inflation outlook and when it might start slowing its asset purchases.

He did not mention bubbly conditions in financial, commodity, and real estate markets, nor the dangerous buildup of leverage in the business and corporate sector as potential threats to system stability. He did not discuss

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