The most important new power granted to the Fed by the Dodd-Frank Act was to expand its power to manage systemic risk.

Question

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The Dodd-Frank Act, officially known as the Dodd-Frank Wall Street Reform and Consumer Protection Act, was enacted in response to the 2008 financial crisis. One of its key provisions was to grant the Federal Reserve new powers to oversee and manage systemic risks to the financial system, aiming to prevent future financial crises. This included enhanced regulatory authority over non-bank financial companies and other entities deemed systemically important, as well as the creation of the Financial Stability Oversight Council (FSOC) to identify and monitor systemic risks.

The Most Important New Power Granted to the Fed by the Dodd-Frank