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White House Still Favors Fed as Systemic Risk Regulator

The White House continues to favor the Federal Reserve as the regulator of systemic risk, adding that reports that it's backing away from that commitment are premature, senior administration officials told CNBC Friday.

The officials said that they support the continuing financial regulation negotiations taking place in the Senate, but that no deal has yet been made on a systemic risk regulator.

Instead, the administration wants to get a financial bill moving through the Senate, after which point it will decide who will regulate systemic risk.

Separately, the officials said they are surprised the market has responded so well to the Fed's decision to raise the discount rate to 0.75 percent from 0.50 percent.