Randal Quarles is set to be nominated as the Federal Reserve’s top banking regulator, the White house announced on Monday. The position, originally created after the 2008 financial crisis, was never filled by President Obama, and thus, if confirmed, Quarles would be the first person to serve as the first vice chair of supervision at the Fed. Daniel Tarullo had previously been overseeing the American banking system, but he resigned from his position in April. Tarullo was a staunch supporter of the Dodd-Frank Wall Street reform law, passed in 2010, and he was known for administering rigorous ‘stress tests’ to ensure that the banking system would be able to withstand unexpected shocks.
President Trump has made no efforts to hide his desire to ease financial regulations including lobbying for the repeal of the Dodd-Frank Act, and installing Quarles in this position is certainly one way to move closer to this goal. Quarles has previously declared his belief that Dodd-Frank was a “concession to inappropriate pressures.” Quarles previously served as the undersecretary of the Treasury during George W. Bush’s administration, and he currently runs the Cynosure Group, a private investment firm.
Currency Movements
The dollar moved slightly higher on Tuesday morning as traders wait eagerly for a statement from Fed Chair Janet Yellen which may shed light onto when the Fed will take steps to tighten U.S. monetary policy. The dollar was trading at 114.11 yen at 10:22 a.m. HK/SIN, up only 0.06 percent after touching a two-month high of 114.30. The dollar also gained slightly against the euro, trading at $1.1394. The dollar index gained 0.1 percent in early trade to trade at 96.094 .DXY.