Fed’s Barr Warns of Booms and Busts Tied to Weakened Bank Rules

Federal Reserve Governor Michael Barr emphasized that regulation must evolve with the financial system, issuing a warning as Trump-era officials look to ease rules for big banks and shift to a lighter touch.

“It is striking to see the pattern of regulatory weakening during a boom, including the failure of the regulatory environment to keep pace with the evolving financial sector, and how this weakening lays the foundation for a subsequent bust,” Barr said in prepared remarks for a Brookings Institution event on Wednesday.