WASHINGTON—Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell told the House Financial Services Committee, as part of update on implementation of coronavirus relief and the Fed's monetary policy, that they have worked to provide considerable assistance and continue to do so.
On the Fed’s response, Powell testified that sectors most adversely impacted by the pandemic remain weak and noted that the data justifies continued accommodative monetary policy.
Yellen said the Treasury Department is working on allocating funds set aside for community development financial institutions (CDFIs) and minority depository institutions (MDIs) in the Consolidated Appropriations Act – enacted in December.
BSA, CECL
Yellen also told the committee that implementation of Bank Secrecy Act (BSA) and anti-money laundering reform, including the establishment of a beneficial ownership database, remain a top priority for the Financial Crimes Enforcement Network (FinCEN).
During the virtual hearing Rep. Blaine Luetkemeyer (R-MO) pointed to new data on the current expected credit loss (CECL) standard is now available and called on Powell to provide the Fed’s analysis. Luetkemeyer also reiterated his position that a delay of CECL implementation may be necessary.
Both CUNA and NAFCU have supported additional delays in implementation of CECL.