(Feb 15) In House testimony, Federal Reserve chair Janet Yellen said the Fed doesn't plan to act on possible bond liquidity issues that may have arisen due to the Volcker Rule.
Evidence on the rule's impact "is conflicting," and it is "difficult to come to a conclusion," Yellen said, and a Sep. 2016
Fed paper about the impact of the Volcker Rule on bond liquidity was the work of a staff member, not the full Fed Board. In that paper, the
Fed flagged problems with Volcker, concluding that institutions constrained by the rule "have decreased their market-making activities" and that bond markets show less buying and selling when stressed.