What Jerome Powell’s Confirmation Means for You
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What Jerome Powell’s Confirmation Means for You

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Like any American who has one iota of intelligence or historical perspective, I am outraged by our country’s loss of civility and direction at the hands of the Republican (now Trumpian) Party.  The tax bill, in particular, is an assault on all Americans outside the billionaire class.  The country feels like France circa 1788 and our least desirable elements are turning us into a banana republic.

However, Jerome Powell’s appointment is not an assault on Americans.  Rather, it is a benefit to consumers.  Powell is clearly intent on pairing back post-2008 legislation that was well intentioned but which has had adverse consequences.  Rules applied to the banking system through Dodd Frank and other legislation were designed to protect the financial system from “too big to fail”, but have ironically created a situation where the 8,000 commercial banks that aren’t Chase, Citibank, Wells Fargo and Bank of America have been unable to be competitive for over a decade.  Instead, they have been busy paying Accenture, Deloitte and Price Waterhouse fortunes to ensure compliance with obscure rules.

As these rules are paired back, Americans will find increasingly competitive savings rates and CD rates from banks geographically near them.  Credit unions also will be able to compete.

And, these same institutions will be able to offer more competitive rates on their mortgage, home equity and auto loan products.

In the end game, Americans will win from increasing competition, at least in the short term.

There is competition for your money.  Take advantage of it by exploring a map of banks near you.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to financial literacy and bank transparency. Since co-founding this website in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.
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