Fed Chair Yellen Off the Mark in Dodd-Frank Comments

At the Federal Reserve’s annual conference in Jackson Hole, Wyoming, on August 25, 2017, Federal Reserve Chair Janet Yellen made some tedious claims on the state of the financial system. Ten years on from the global financial crisis, Yellen claimed that the Dodd-Frank Act has made the banking system more resilient without damaging the economy, calling for “modest” reforms to the sector.

CEI Policy Analyst Daniel Press said:

“Chairwoman Yellen claims the Dodd-Frank Act has been a boon for the financial system, yet reality is just the opposite. Dodd-Frank continues to punish banks of all size, restricting economic growth and job creation. Since the legislation’s passage, around 1 in 5 banks have disappeared, while virtually no new banks have been formed. Smaller banks have particularly suffered under the weight of this burdensome regulation.

“Despite Chairwoman Yellen’s remarks, there is in fact a great need for regulatory relief. Congress should show no restraint in rolling back the many onerous measures of Dodd-Frank that have damaged both financial markets and led to the slowest economic recovery in modern American history.”