Powell: "Regional banks are central to the U.S. financial system"…no mention of monetary policy

Jerome Powell, chair of the U.S. Federal Reserve (the Fed), emphasized the importance of regional banks and said, "We will continue to adjust the framework so that we can maintain soundness while minimizing supervisory burdens."

In his opening remarks at a regional bank meeting held at the Fed's headquarters on the 9th (local time), Powell said, "Regional banks are closely connected to their communities and are important financial institutions that can directly understand and respond to local economic conditions." He assessed that "this close relationship is a competitive advantage that allows them to offer financial products and services tailored to customers."

He added, "The Fed has continued to adjust supervisory policies to understand the issues regional banks face and to reduce unnecessary regulatory burdens," and emphasized, "we will pursue the two goals of easing supervision and ensuring safety in a balanced way."

He also said, "Regional banks are a key pillar that supports the economic ecosystem of the communities they belong to," and added, "the Fed respects that role and will support them so they can continue to operate soundly."

Meanwhile, Powell did not comment on monetary policy or the direction of interest rates in the speech. The meeting was chaired by Miki Bowman, vice chair of the Fed, and regional bank officials and senior Fed officials attended to discuss the regulatory environment for small and medium-sized financial institutions and regional economic issues.