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Don't blame Fed, Bernanke says

Federal Reserve Chairman Ben Bernanke blamed regulatory failure, not the Fed's low interest rates, for the financial crisis, the New York Times reported. "Stronger regulation and supervision aimed at problems with underwriting practices and lenders' risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates," Bernanke said in remarks to the American Economic Association. Some lawmakers contend that the Fed's monetary policy was a key contributor to the crisis, because it encouraged reckless borrowing and lending.