One potential treasury secretary argued for increased control over the Federal Reserve and said that the Dodd-Frank Act has been a "disaster" for the creation of venture capital and small businesses.
"In terms of eliminating the Federal Reserve, that's something I'd like to do in theory, but I don't think it's doable in practice," John Allison said on CNBC's "Closing Bell" on Tuesday. "What I really want to do with the Federal Reserve is control it. You really have an incredibly powerful organization that there's no self-discipline for and it's had a big impact, I believe, on our economic volatility over the years."
The former president and CEO of the Cato Institute previously suggested he would get rid of the Federal Reserve because it is the primary cause of volatility in the economy. While he acknowledged that bubbles do form in the market, Allison argued in the Cato Journal that the U.S. central bank makes them worse.
Allison, who is also the former chairman and CEO of BB&T, repeated his call for the elimination of regulations such as the Dodd-Frank Act. Such legislation was passed after the Great Recession with the goal of protecting consumers and preventing another collapse of a major financial institution like Lehman Brothers.