Nova Safo

I'm Nova Safa for Marketplace.

Well, David, this news comes from the Fed's Vice Chair for Supervision, Michelle Bauman.

She was speaking yesterday at a conference of the American Bankers Association, and she said regulation with regards to banks issuing and servicing mortgages has become too onerous after the financial crisis, causing banks to largely cede that business to specialty mortgage lenders and non-bank institutions.

So what Bauman is proposing is easing capital requirements, the mix of cash, stock, and other assets that banks have to hold in case of trouble, as well as changing how risk is calculated with regards to mortgages, David.

Well, what she argues is that a lot has changed since regulations were tightened in 2013.

She says now regulators better understand how banks handle mortgages, and they better understand the risks involved.

And that's why she said that some changes can be made safely while keeping the banking system as a whole stable, David.

Kevin Warsh served as Fed governor from 2006 until 2011, a time span that included the financial crisis and the Federal Reserve's efforts to stabilize Wall Street.

He's a visiting fellow in economics at Stanford's Hoover Institution, a conservative-leaning think tank.

Warsh has recently criticized the Federal Reserve, saying that it has not done enough in the past to fight inflation.

Here he is speaking at the Hoover Institution.

Warsh believes the Fed now should lower interest rates more, something President Trump has called for.

Warsh says doing so won't trigger more inflation because artificial intelligence and its advancements will boost productivity.

Higher productivity has historically been a deflationary force.

Warsh also wants less intervention in financial markets and a more hands-off approach at the Fed toward bank regulation.

I'm Novosafo for Marketplace.

The economy has been stuck in a low-fire, low-hire mode, and the latest survey from the National Association of Business Economists indicates that's not about to change anytime soon.

That's survey chair Martha Moore.

A third of respondents said their companies will likely freeze hiring to see how artificial intelligence tools can help improve their operations.

The latest government data shows productivity gains did accelerate in the third quarter of last year.