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At Yellen hearing, members discuss Volcker 

February 13, 2014
Steve Goldstein, Market Watch

It may have been Janet Yellen’s debut as Federal Reserve chairwoman, but another former Fed chief’s name was invoked quite frequently at the hearing: Paul Volcker.

The references were less to Volcker’s chairmanship of the Fed, and more to the name he lent to the Dodd-Frank provision banning proprietary trading. The chairman of the committee, Rep. Jeb Hensarling, a Texas Republican, called the provision “incomprehensible.”

Rep. Bill Huizenga, a Michigan Republican, questioned Yellen at length about the provision, its possible impact on the market and whether U.S. banks will be at a competitive disadvantage. Yellen was fairly agnostic, saying the central bank “will take time to see what the effects of the rule are.” She also pointed out it was Congress’s — not the Fed’s — idea in the first place.

Read more: Market Watch

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