Powell Says Fed Is Very Attuned to Testing Financial System's Strength

The video discusses the financial crisis, highlighting the system's inability to withstand shocks from subprime mortgage losses. It details the government's emergency response and subsequent reforms to strengthen banks, including increased capitalization and stress testing. The video also addresses market dysfunctions and emphasizes the need for ongoing vigilance and flexibility to handle future challenges like cyber attacks, ensuring the financial system's resilience.

What was the main event that led to the financial crisis discussed in the text?

How did the financial system respond to the shock of the crisis?

What measures were taken to ensure banks have more loss-absorbing capacity?

What role do stress tests play in the financial system's resilience?

What challenges does the financial system face in the future according to the text?