Search ForexCrunch

As reported by Bloomberg, ex-Fed head Janet Yellen is delivering talking points in Singapore at the New Economy Forum, where proceedings have entered their second day.

Key highlights

Regulators are lacking sufficient tools to address new issues, and whether or not the US has the appropriate tools to deal with new, emerging risks is unclear. Despite this, there’s certainly more oversight both in the US and abroad than there was ten years ago.

Regarding financial stability, Yellen sees the glass as “half full”, but the new buildup of corporate debt represents a significant new emerging risk.

On the US Dollar, Yellen says that there have been definite benefits for global trade having the USD be available for international borrowing, as well as a safe haven, but cautions this is only because of low and stable inflation.

The Fed’s swap lines were incredibly important in the 2007-08 financial crisis, and the Fed may have to “look seriously again” at extending swap lines should another crisis unfold.

“There have been some benefits for the global economy having the dollar being available to be used for international trade and borrowing, it’s served as a safe haven, provided a source of safe liquid assets amid low and stable inflation in the U.S.” – Yellen, via Bloomberg