Financial Times FT.com

New rules put Fed in hot seat

By Krishna Guha and Tom Braithwaite in Washington

Published: June 16 2009 20:39 | Last updated: June 17 2009 15:01

President Barack Obama will reveal plans on Wednesday for a new system of US financial regulation that expands the powers of the Federal Reserve so that it can assume primary responsibility for averting financial crises.

Mr Obama will also announce plans for the creation of a council of financial regulators, intended to improve co-ordination between different agencies. The council will discuss systemic risks but the Fed will not need its approval to act against them.

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