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Regulatory reforms imposed restrictions on the Fed, the Treasury and the Federal Deposit Insurance Corp., ending their ability to make emergency loans to support troubled banks. The rules came as a result of widespread public anger over the billions of taxpayers' dollars provided on Wall Street in government bailouts. Politicians have chosen this unpopular course of action to let the entire banking system collapse, which they say would have been far more disastrous.
Bernanke, who served under the George W. Bush and Barack Obama administrations, also attracted attention. deficit, criticizing Trump 's tax cuts and fiscal stimulus package while full employment is nearing completion.
Debt and deficit levels much higher than those of ten years ago. necessary. In 2009, Obama implemented the controversial US Recovery and Reinvestment Act to offset lower private sector spending of more than $ 800 billion.
In addition, the Fed has less room to lower interest rates. Stimulus measures are needed – the benchmark rate of the bank is now 1.75 to 2% against 5.25% in the summer of 2007.
Geithner, Bernanke and Paulson nevertheless welcomed the strengthening of the banking sector and the government's increased ability to cope with failures
But economists, echoing many market players and government officials, have expressed concern over US debt. The federal debt held by the public sector now accounts for 77% of gross domestic product (GDP), double its 2007 level.
"If we do not act, it is the fiscal crisis or the most certain economic we will have, "said Paulson. "He's going to strangle us slowly."
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