Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

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)

Related Shares

More News
20 Jun 2024 08:58

TOP NEWS: Sainsbury's pays NatWest GBP125 million to take on bank arm

(Alliance News) - NatWest Group PLC on Thursday agreed to buy the retail banking assets and liabilities of Sainsbury's Bank from J Sainsbury PLC.

20 Jun 2024 08:11

NatWest swoops on retailer Sainsbury's banking business

LONDON, June 20 (Reuters) - NatWest has struck a deal to acquire most of the banking business of UK retailer Sainsbury's, the companies said on Thur...

18 Jun 2024 08:36

IN BRIEF: Melrose Industries hires former British Land CEO as chair

Melrose Industries PLC - Birmingham, England-based aerospace firm with Engines and Structures divisions that were formerly part of GKN - Hires Chris G...

17 Jun 2024 22:30

UK's Labour pledges to plug gaps left by bank branch closures

LONDON, June 17 (Reuters) - Britain's Labour Party said on Monday it would give regulators new powers to significantly increase the number of 'banki...

17 Jun 2024 09:33

LONDON BROKER RATINGS: Goldman Sachs cuts SSP Group to 'sell'

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning and on Friday:

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.