Former officials say Fed should impose tighter regime
Donald Kohn and Jeremy Stein warn of risks and say Fed should stop US banks paying dividends
The Federal Reserve’s regulatory response to Covid-19 is posing unnecessary risks to the financial system and US economy, according to two former senior Fed officials.
The Fed should stop banks issuing dividends, argued former vice-chair Donald Kohn and former board of governors member Jeremy Stein, during a discussion hosted by the Brookings Institute, a US think-tank. It had to prepare the system for an increase in loan losses over the coming quarters, they both said.
“Now is the time to
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