Republicans Warn Fed Against Adopting New Rules Before Senate Confirms Trump Nominee
February 23 2017 - 11:23PM
Dow Jones News
By Ryan Tracy
WASHINGTON -- Republican lawmakers sent a letter to Federal
Reserve Chairwoman Janet Yellen warning against adopting new rules
in the coming months before the Senate confirms President Donald
Trump's nominee for a key regulatory job.
"If the Federal Reserve chooses to adopt rules prior to the
confirmation of a Vice Chairman for Supervision, please be aware
that we will work with our colleagues to ensure that Congress
scrutinizes the Federal Reserve's actions -- and, if appropriate,
overturns them -- pursuant to the Congressional Review Act," says
the letter dated Thursday from House Financial Services Committee
Chairman Jeb Hensarling (R., Texas) and others on the committee.
The act the letter refers to allows Congress to pass resolutions
overturning rules adopted by independent agencies.
The vice chair position is vacant at the central bank, and Mr.
Trump hasn't named a nominee for it. It is a powerful post with
significant influence over the Fed's bank regulatory policies.
The letter cites executive orders issued by Mr. Trump outlining
regulatory principles and calling for a freeze in new regulations
until his appointees can be put in place. The letter mentions one
specific rule, a yet-to-be published proposal that is expected to
make the Fed's stress tests more difficult to pass for the largest
banks. That rule is known as the stress capital buffer.
A Fed spokesman offered no immediate reply but said the central
bank had received the letter.
Write to Ryan Tracy at ryan.tracy@wsj.com
(END) Dow Jones Newswires
February 23, 2017 23:08 ET (04:08 GMT)
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