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Fed Risks Creating an Environment For Another Financial Crisis, Ex-Officials Say

  • They worry about risky mix of easier credit, laxer regulation
  • Fed Vice Chair Quarles counters that banking system is sound

The Federal Reserve is running the risk of fomenting an eventual financial crisis by easing banking regulations at the same time that it’s cut interest rates.

So say some former Fed officials, including ex-Vice Chairman Alan Blinder and financial stability experts Daniel Tarullo and Nellie Liang.