Fed working to prevent 'regulatory capture' by banks it oversees: Yellen

Washington

US Federal Reserve chair Janet Yellen, countering criticism from members of Congress, said that the central bank is trying to avoid being too cozy with the Wall Street firms it supervises and wants to ensure that regulators aren't afraid to confront the financial industry.

"The risk of regulatory capture is something the Federal Reserve takes very seriously and works very hard to prevent," Ms Yellen said in remarks prepared for a speech in New York on Tuesday night. "It is important that anyone serving the Fed feel safe speaking up when they have concerns about bias toward industry, and that those concerns be addressed."