“Our financial system is without doubt far stronger and more resilient than it was a decade ago,” he said. “Our banks have much higher levels of capital and liquid assets, are more aware of the risks they run, and are better able to manage those risks.”
Mr. Powell’s characterization of the financial industry differs sharply from the picture painted last week by Mr. Trump, who criticized the regulatory actions of the Consumer Federal Protection Bureau in a Twitter post, saying that “Financial Institutions have been devastated and unable to properly serve the public.”
Mr. Powell added, however, that he was open to changes that improved the current system.
“We will continue to consider appropriate ways to ease regulatory burdens while preserving core reforms — strong levels of capital and liquidity, stress testing, and resolution planning — so that banks can provide the credit to families and businesses necessary to sustain a prosperous economy,” he said.
Mr. Powell, 64, joined the Fed in 2012. He is a lawyer by training and an investment banker by trade, with deep roots in the financial industry and the Republican Party. Since joining the Fed, he has voted consistently in support of the policies proposed by the current chairwoman, Janet L. Yellen, and her predecessor, Ben S. Bernanke. But Mr. Powell has sometimes expressed reservations about the extent of the Fed’s efforts to revive economic growth and to restrain the financial industry,…