To the extent that low interest rates in the years before 2008 contributed to the financial crisis of 2008-2009 in the United States,the blame for this policy lies with:

Question

Quizplus · Accepted Answer

Low interest rates prior to the financial crisis were set by the Federal Reserve. The policy of keeping interest rates low encouraged banks to take on more risk and lend to subprime borrowers, ultimately contributing to the housing bubble and subsequent financial crisis. While other players such as investment banks, rating agencies, and mortgage brokers also played a role, the ultimate responsibility for setting the interest rate policy lies with the Federal Reserve.

To the Extent That Low Interest Rates in the Years