U.S. bank regulators have room to ease the Volcker Rule that limits how much Wall Street may gamble with customers’ money, Federal Reserve Governor Jerome Powell said.
The Volcker Rule is meant to prevent banks from using customer deposits to make risky bets but implementing the rule has proven complicated, industry and regulators agree.
“We look forward to working with the other four Volcker Rule agencies to find ways to improve the regulation,” Powell said in prepared testimony to Congress he is due to deliver on Thursday.
The Fed is just one of several leading bank regulators that must agree to any reform of the Volcker Rule.
On Thursday, Powell will join several other regulators at a hearing to discuss how President Donald Trump’s administration might reform banking rules.