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We noticed that the 2007-2009 financial crisis raised a series of important questions about the financial...

We noticed that the 2007-2009 financial crisis raised a series of important questions about the financial system. Following the financial crisis, Congress debated the issue of reducing the independence of the Federal Reserve System. Should Congress and the president be given greater authority over the Federal Reserve System? Why or why not? Explain your reasoning in detail.

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the financial crisis or the great depression was because of failure in financial regulation and supervision. and as the king of financial supervision is federal reserve system the blame was on them. though its not totally wrong, its not right either.as the economy grows we are moving towards liberalisation and globalisation so liberalisation in the financial system is also necessary and thats what the federalsystem was following but again keeping a eye on the monetary system and keeping systematic records helps to predict the future situation better but here the federal system couldnot make a fair preiction about the future and they could not  stop the bublilg in the housing market which led to the financial crisis. but the situation is not only the failure of federal system alone it is also the failure of the government and the entire system so removing the power from the federal system and giving it to the hands of congress and the president will only lead to politicization of the entire system. they will try to drive the entire system to there fever only.so federal system as a unbised system should be given the power to look out the economic system and to stabilise it.

Rahul Sunny answered 2 years ago
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