Fed official: Banking system generally healthy, inflation battle on track

  • Banks in western states are experiencing stability due to a strong economy.
  • Bank failures are at low levels, and the banking industry is continuing to consolidate.
  • Community bankers are advocating for fewer regulations, while Federal Reserve officials advise a balance between consumer protection and economic growth.

Banks in Arizona and western states are benefitting from a generally solid economy with ongoing growth and steady employment and remain "safe and sound," a top Federal Reserve official said in Phoenix.

She said banks are probably anticipating a bit less regulation coming from Washington.

"The national economy is in a good place," said Mary C. Daly, president and CEO of the Federal Reserve Bank of San Francisco, at a conference geared to community bankers and hosted by the American Bankers Association. Businesses in Arizona and other Western states seem more optimistic than those in many other parts of the nation, she added.

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