"Our financial system is undoubtedly much stronger and more resilient than a decade ago," he said. "Our banks have much higher levels of capital and liquid badets, are more aware of the risks they run and are better able to manage those risks."
Mr. Powell's characterization of the financial industry differs markedly from the image painted last week by Trump, who criticized the regulatory actions of the Federal Office of Consumer Protection in a Twitter publication, saying that "the institutions have been devastated and unable to adequately serve the public. "
Mr. Powell added, however, that he was open to changes that improved the current system.
"We will continue to consider appropriate ways to alleviate regulatory burdens while preserving core reforms: strong levels of capital and liquidity, stress testing and resolution planning – so that banks can grant credit to families and businesses needed to maintain a prosperous economy, "he said.
Mr. Powell, 64, joined the Fed in 2012. He is a lawyer by profession and an investment banker by trade, with deep roots in the financial industry and the Republican Party. Since joining the Federal Reserve, she has consistently voted in support of the policies proposed by the current president, Janet L. Yellen, and her predecessor, Ben S. Bernanke. But Powell has sometimes expressed reservations about the scope of the Federal Reserve's efforts to reactivate economic growth and restrict the financial industry, suggesting that it will try to moderate the current focus of the central bank.
Mr. Trump nominated Mr. Powell this month, declining to appoint Ms. Yellen for a second term. Mr. Trump said he wanted to elect his own Fed chairman. Ms. Yellen has said that she will resign as soon as her successor officially takes office.
In his testimony, Mr. Powell praised both Ms. Yellen and Mr. Bernanke and said he would resist political pressure.
"I am committed to making decisions objectively and based on the best available evidence," he said. "In doing so, I would be guided solely by our congressional mandate and the long-term interests of the American public."
Continue reading the main story