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"You'll see political pressure on the Fed to be much less
accommodative ... influence on the Fed is going to be a
significant consequence of the election," Staley said at the FT
Banking Summit.
Staley also said that John Taylor, the influential Stanford
University economics professor whose 'Taylor rule' describes how
banks should raise interest rates in response to inflation,
could become the next chairman of the Federal Reserve.
"There's a very tight group within the Republican Party that
believes quantitative easing has run its course," Staley said.
Staley said he did not foresee big rollbacks on banking
regulation, following speculation that President-elect Trump
could reverse parts of the Dodd-Frank legislation governing the
split of banks' commercial and investment banking activities.
Staley said that Britain's vote to leave the European Union
would be less impactful than the election of Trump on the global
economy and markets, and would take longer to execute than had
been initially thought.
"I don't think anyone believes we will be able to have clarity
in the time frame of establishing article 50," Staley said,
referring to the legal notification that would trigger Britain's
exit, due by the end of March.
Staley said London would not lose its "gravitational pull" as a
global financial hub, given its position as a home for large
pools of investor money.
Barclays is "looking at a lot of options" as to how to structure
itself in order to retain access to Europe's markets, Staley
said.
(Reporting by Lawrence White and Anjuli Davies; editing by Jason
Neely and Jane Merriman)
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