How Fed Can Prevent the Next Financial Crisis

The publicâ??s faith in the Fedâ??s ability to protect the economy from economic problems has been shaken by the Fedâ??s failures before and during the Great Recession. The recent release of the transcripts from 2006 monetary policy meetings where Federal Reserve policymakers discuss and ridicule the suggestion that the economy is threatened by a dangerous housing bubble has undermined its reputation even further.