DANIEL TARULLO, one of five current governors of the Federal Reserve, has announced that he will quit the job in April. Since his appointment in 2009, Mr Tarullo has led the overhaul of financial regulation at the central bank, which took on greater regulatory powers under the Dodd-Frank law of 2010. In all but name, Mr Tarullo filled a position—vice chair for supervision—which Dodd-Frank created, but which Barack Obama left unfilled (probably because he feared a confirmation battle in the Senate). With Republicans eager to dismantle Dodd-Frank—Donald Trump has ordered a review of the law—Mr Tarullo has decided it is time to go.
He need not have resigned; his term as a governor ran until 2022. However, he was facing an effective demotion, because Mr Trump will probably appoint his own vice-chair for supervision. The obvious signal from Mr Tarullo’s exit is that a big shift in financial regulation is indeed imminent. But it has broader implications for the central bank. There are already two vacancies on the Fed’s supposedly seven-member board. The president now has another seat to fill. In February 2018 Janet Yellen’s term as chair of the Fed comes to an end....Continue reading
Source: United States http://ift.tt/2kY4tGb
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