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How Did The Federal Reserve Stabilize The Economy

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The Federal Reserve was a government institution set up after the Great Depression to stabilize the economy, failed to do the duty that it was set up for. It allowed excessive loans and bonds trading in the billions and pre-known shaky investments just because the sun was shining high and bright on the US economy (Chan). This goulash of financial sector mishaps contributed heavily to the near total collapse of the whole American economics system. Not only that but the Federal Reserve can also cause the next recession. Federal Reserve rates have been at an all-time low since the advent of the Great Recession. Low interest rates was the medication for a struggling economy. It was intended to encourage banks to lend to small businesses and spur

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