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Pin to quick picksBarclays Share News (BARC)

Share Price Information for Barclays (BARC)

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Share Price: 204.85
Bid: 204.75
Ask: 204.80
Change: -3.20 (-1.54%)
Spread: 0.05 (0.024%)
Open: 208.05
High: 208.90
Low: 202.90
Prev. Close: 208.05
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UPDATE 1-Barclays' CEO sees 'political pressure' on Fed after U.S. election

Wed, 16th Nov 2016 10:31

(Adds comments on Brexit)

LONDON, Nov 16 (Reuters) - The election of Donald Trump asthe next U.S. president could signal a period of heightenedpressure on the Federal Reserve to change its accommodativestance, Barclays Chief Executive Jes Staley told abanking conference on Wednesday.

"You'll see political pressure on the Fed to be much lessaccommodative ... influence on the Fed is going to be asignificant consequence of the election," Staley said at the FTBanking Summit.

Staley also said that John Taylor, the influential StanfordUniversity economics professor whose 'Taylor rule' describes howbanks should raise interest rates in response to inflation,could become the next chairman of the Federal Reserve.

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

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

Staley said that Britain's vote to leave the European Unionwould be less impactful than the election of Trump on the globaleconomy and markets, and would take longer to execute than hadbeen initially thought.

"I don't think anyone believes we will be able to haveclarity in the time frame of establishing article 50," Staleysaid, referring to the legal notification that would triggerBritain's exit, due by the end of March.

Staley said London would not lose its "gravitational pull"as a global financial hub, given its position as a home forlarge pools of investor money.

Barclays is "looking at a lot of options" as to how tostructure itself in order to retain access to Europe's markets,Staley said.

(Reporting by Lawrence White and Anjuli Davies; editing byJason Neely and Jane Merriman)

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