How Quarles Could Influence Fed Policy

The video discusses the roles of Janet Yellen and Quarles in monetary policy and banking regulation. It highlights the balance between rules and discretion in monetary policy, emphasizing the need for expertise and judgment. The video also covers the challenges of stress tests in banking regulation, noting the potential for standardization under Quarles.

What is the significance of the balance between rules and discretion in monetary policy as discussed in the text?

In what way might Quarles standardize the stress tests, and what impact could this have?