Fischer did not address the outlook for U.S.
monetary policy or the economy in remarks prepared for delivery
to the DNB-Riksbank Macroprudential Conference Series in
Instead he focused on preventing financial instability, arguing
that since the 2007-2009 financial crisis in the United States,
"the core of the financial system is much stronger, the worst
lending practices have been curtailed, much progress has been
made in processes to reduce unnecessary foreclosures," and a
2008 law helped clarify the status of government support for
housing agencies Fannie Mae and Freddie Mac.
But to prevent a new crisis, he said, governments ought to do
more, including stress tests for banks on their resilience
should house prices decline dramatically, and making it easier
to avoid foreclosures, which hurt both lenders and borrowers.
"(T)here is more to be done, and much improvement to be
preserved and built on, for the world as we know it cannot
afford another pair of crises of the magnitude of the Great
Recession and the Global Financial Crisis," he said.
(Reporting by Ann Saphir; editing by Diane Craft)
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