Federal Reserve board member Milan calls for prioritizing reform of bank regulation, saying cumbersome rules are dragging down industry development.

Federal Reserve Governor Stephen Milan said he hopes the Fed will first review a series of regulatory requirements on Wall Street before discussing other economic issues related to the central bank's balance sheet. "Over the years, financial regulation has largely moved in one direction, constantly strengthening restrictions on the banking industry," Milan said in remarks prepared for the Bank Policy Institute on Wednesday. He added that the interaction between regulation and financial markets, the economy, and the implementation of monetary policy is often underestimated. "Although discussions revolving around bank reserve balances and their interest, balance sheet composition, and the role of government debt markets as intermediaries are abundant, I believe that these discussions are mostly downstream issues of the banking regulatory framework," he said.