Former Fed official warns of ‘urgent’ threat of another financial crisis

Investors cheered Federal Reserve Chairman Jerome Powell’s Jackson Hole speech on Friday, with markets interpreting it to mean that the central bank would not too quickly wind down its support of the economy. But not every speaker at the annual gathering gave cause for optimism.

Don Kohn, the Fed’s former vice chair for financial supervision, used the opportunity instead to warn of imminent risks to the stability of the global financial system, and called on regulators and lawmakers to take swift action to address those concerns.

“Dealing with risks to the financial stability is urgent,” he said during a speech

Read more

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

Read more