Fed’s Barr Says Monetary Policy ‘Inextricably’ Tied to Stability

Federal Reserve Vice Chair for Supervision Michael Barr says monetary policy and financial stability are “inextricably linked.”

Barr’s speech Tuesday followed President Donald Trump’s recent executive order seeking to tighten the reins on independent agencies, including the Fed’s bank supervisory and regulatory work. The order last week wouldn’t directly affect the central bank’s monetary policy, but it called for agencies to submit draft regulations for White House review before publication and consult with the administration on priorities and strategies.