The Federal Reserve's second-in-command, vice chairman Stanley Fischer, warns against ''inviting further trouble'' by eliminating some of the so-called Dodd-Frank financial regulations. Jeanne Yurman reports.
The Federal Reserve's second-in-command, Stanley Fischer, was the latest official from the central bank to wade into a post-election debate over U.S. government policies. (SOUNDBITE) STANLEY FISCHER, U.S. FEDERAL RESERVE SYSTEM VICE CHAIRMAN OF THE BOARD OF GOVERNORS, (ENGLISH) SAYING: "For several years, the Fed has been close to being 'the only game in town', as Mohamed El-Erian described. But macroeconomic policy does not have to be confined to monetary policy. It's the only game in town because the other guys didn't want to play it." Fed officials as well as the International Monetary Fund have called on the U.S. to tap fiscal stimulus - or tax relief - to boost economic growth. That seems more likely with a Trump presidency and a Republican-controlled Congress. Regarding the sharp surge in the dollar, Fischer, speaking at the Council on Foreign Relations in New York, said it won't change the Fed's policy goals. He reiterated a plan to trim its balance sheet. And while Trump wants to repeal Dodd-Frank regulations created after the 2008 financial crisis, the Fed's vice-chair says it's important to preserve them. (SOUNDBITE) STANLEY FISCHER, U.S. FEDERAL RESERVE SYSTEM VICE CHAIRMAN OF THE BOARD OF GOVERNORS, (ENGLISH) SAYING: "You can go through a set of measures on liquidity, on capital, on risk taking that have changed the behavior of the financial system. And we better preserve that because if we don't we are inviting further troubles emanating from the financial sector." As for the U.S. economy overall, Fischer said it's doing 'reasonably well', in 'vicinity' of officials' goals for jobs and inflation, though the Fed 'would be happier if the short-term interest rate was higher'. That would be a sign of confidence, he said, about the future.