Former US Fed board member Daniel Tarullo talking to Bloomberg 24 July

  • Fed may want to start balance sheet regardless of chair
  • concerned about weakening of CFPB, capital levels
  • important to keep up capital levels on biggest banks
  • capital levels not crimping credit in mortgage market

Tarullo resigned in April this year having served since 2009 appointed to the Board by President Obama for an unexpired term ending January 31, 2022. During his time on the Board, he served as Chairman of the Board's Committee on Supervision and Regulation. He was also Chairman of the Financial Stability Board's Standing Committee on Supervisory and Regulatory Cooperation.

Meanwhile markets steady as we wait on NA desks to make their move.

GBPUSD 1.3037 EURUSD 1.1645 USDJPY 110.78 AUDUSD 0.7947 USDCAD 1.2532

Tarullo - Inflation risks modest