Fed Governor Tarullo is sticking to comments on regulation, as usual.

  • Transition period will limit the impact of higher capital rules
  • There may be ‘some benefit’ in reviving Glass-Steagall
  • Glass-Steagall wouldn’t have prevented crisis

The talk about Glass-Steagall comes about after a group of Democrats and Republicans launched an effort to revive it (it’s highly unlikely to succeed).

Update (some comments on policy):

  • Mid-Spring market rate rise tied to better economy
  • ‘No one’ on the FOMC is talking about selling assets
  • Reiterates that the Fed’s main rate is tied to thresholds, not triggers
  • Fiscal trad on the economy is a significant unknown
  • Large corporations are ‘very cash rich’ now