Yellen, Draghi mount defense of post-crisis financial regulation

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"But if we keep this lesson fresh in our memories - along with the painful cost that was exacted by the crisis - and act accordingly, we have reason to hope that the financial system and economy will experience fewer crises and recover from any future crisis more quickly, sparing households and businesses some of the pain they endured during the crisis that struck a decade ago".

Cohn has been touted as the leading candidate to succeed Yellen (http://www.marketwatch.com/story/cohn-reportedly-front-runner-to-replace-yellen-as-fed-chief-2017-07-11) when her current term ends in 2017 and he also is seen as an instrumental figure in helping Trump advance fiscal-stimulus pledges including tax cuts. The financial industry prefers high interest rates and low inflation, as those conditions make it a lot easier for banks big and small to make hefty profits. That relationship is critical, so much so that Ben Bernanke, Fed chairman during the crisis, declared in his final FOMC press conference in 2013 that "Congress is our boss". Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. While economic growth is now less than robust, the USA economy is growing and we are nearing full employment.

For the week, the Dow rose 0.65 per cent, the S&P 500 gained 0.72 per cent and the Nasdaq climbed 0.79 per cent. In fact, the common narrative at the time was the possibility that we would all be hunter-gatherers.

At that point, President Trump will have to nominate a replacement, to be confirmed by the Senate. He's said that boosting United States economic growth to 3% is "setting very realistic expectations".

"Preeminent among these domestic and global efforts have been steps to increase the loss-absorbing capacity of banks, regulations to limit both maturity transformation in short-term funding markets and liquidity mismatches within banks, and new authorities to facilitate the resolution of large financial institutions and to subject systemically important firms to more stringent prudential regulation", she said.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Spot Gold prices may continue to fall.

Others have been mentioned as possible choices for Trump, several of whom attended the Fed conference at a lodge in Grand Teton National Park.

Ms. Yellen extended an olive branch to the Trump administration, saying that the Fed was committed to reviewing the impact of regulations and that it saw specific areas with room for improvement. When you factor in that Cohn publicly criticized the commander-in-chief's remarks in response to the violence in Charlottesville, it is far from certain that Cohn is or will be in President Trump's good graces.

But Cohn said he was not leaving his White House job. That was beneath expectations for 0.8 percent and down from the downwardly revised 0.7 percent gain in June.

"We have to understand the environment in which we're we're acting", Cleveland Fed President Loretta Mester said in a Bloomberg Television interview in Jackson Hole. The Fed was pretty hawkish coming into the year. His tenure is widely derided as the worst in Fed history.

The U.S. dollar dropped to its lowest in roughly 16 months against a basket of major currencies and a more than 2-1/2-year low against the euro, following comments from central bankers on Friday and worries over the storm hurting the U.S. economy.

I wrote this article myself, and it expresses my own opinions.

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