Regulators can do harm - a rare admit from the Fed

 

It is striking that the Fed admitted it made a mistake. Michelle Bowman gave a speech in London that should raise some eyebrows. Note that the speech was given outside the country. The key findings are listed below, but most surprising is that the review suggests a risk-averse culture among regulators. Better to do nothing than take some action. The bank regulation is done at the regional bank level. For all the speeches and economic research that is done at the regional Fed level, shouldn’t they get this right? It is not clear that centralization would be better, but this is interesting food for thought.

Now, the question is what will Governor Bowman do about this?