Whether the Fed “should” be engaged now in an effort to achieve financial deregulation is beyond my pay grade. The timing does seem odd from the perspective of the business and financial cycles, but there are several competing interests involved here.
What this does confirm, however, is that the Fed is not willing to pay a very high price to pursue financial stability. Almost certainly, they will not use monetary policy to that end, although they will very probably continue talk about it a lot. FH-180121