[arcticbull]

These are all separate responsibilities of different groups.

The Fed's charter is to maintain a low, predictable rate of inflation over the medium term and to maximize employment. You (in aggregate) won't have a job if all the employers go bankrupt due to direct investments and contagion. This will directly impact (in aggregate) your ability to make your mortgage payments.

Secondarily, regulation of the financial sector to ensure this doesn't happen again isn't JPow's job, it's the job of Congress.

Bailing out the institutions does not preclude further regulation to prevent the situation from happening again. And it certainly doesn't preclude creating a meaningful social safety net.

[kcatskcolbdi]

The Federal Reserve is absolutely tasked with regulating the banks[1].

Congress should not be in the business of preventing banks from imploding in on themselves via regulation. Congressional regulations should insulate consumers from predatory financial institution practices. FDIC insurance exists to protect consumers in the event their banks behave irrationally. There should be no backstop for the banks themselves. Even if they wanted to Congressional regulations couldn't keep pace with the speed at which financial instruments of institutional suicide are forged.

1 https://www.federalreserve.gov/supervisionreg/reglisting.htm