Volcker Says Fed Shouldn't Rely on a Rule to Set Policy

The transcript discusses the relevance of a 21st-century Glass-Steagall Act, the regulation of investment banks, and the role of the SEC. It suggests creating a new supervisory agency linked to the Federal Reserve to ensure unified oversight. The importance of aligning domestic and international bank regulations is emphasized. The discussion concludes with a preference for discretionary monetary policy over strict rules.

What is the speaker's stance on the necessity of a 21st-century Glass-Steagall Act?

• He thinks it should be implemented immediately.

• He is undecided about its benefits.

• He believes it is unnecessary and potentially harmful.

• He fully supports it.

According to the speaker, what has been the SEC's historical priority?

• Regulating investment banks

• Implementing monetary policy rules

• Market integrity and transparency

• Overseeing the Federal Reserve

What does the speaker propose regarding supervisory responsibilities?

• Abolishing all existing agencies

• Creating a new unified supervisory agency

• Giving all power to the SEC

• Leaving responsibilities as they are

What is the speaker's view on international consistency in bank regulations?

• It is unnecessary in today's world.

• It is crucial for effective regulation.

• It should be ignored in favor of domestic policies.

• It is only important for small markets.

How does the speaker feel about implementing a monetary policy rule?

• He believes rules should be abolished.

• He supports a strict rule-based approach.

• He prefers discretionary decision-making.

• He is indifferent to the approach.