Barclays CEO sees 'political pressure' on Fed following election

EghtesadOnline: The election of Donald Trump as the next U.S. president could signal a period of heightened pressure on the Federal Reserve to ease its accommodative stance, Barclays Chief Executive Jes Staley told a banking conference in London on Wednesday.

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16 November 2016

"You'll see political pressure on the Fed to be much less accommodative...influence on the Fed is going to be a significant consequence of the election," Staley said at the FT Banking Summit.

Staley also said that John Taylor, the influential Stanford University economics professor whose 'Taylor rule' describes how banks should raise interest rates in response to inflation, could become the next chairman of the Federal Reserve, according to Reuters.

"There's a very tight group within the Republican Party that believes quantitative easing has run its course," Staley said.

Staley said he did not foresee big rollbacks on banking regulation, following speculation that President-elect Trump could reverse parts of the Dodd-Frank legislation governing the split of banks' commercial and investment banking activities.