How did the Fed contribute to the banking crisis of 2008-2009?

The Federal Reserve contributed to the banking crisis of 2008-2009 by maintaining low interest rates for an extended period, which encouraged excessive risk-taking in the housing market and fueled a housing bubble. Additionally, the Fed's regulatory oversight was insufficient, allowing financial institutions to engage in risky lending practices and complex financial products, such as subprime mortgages and mortgage-backed securities. When the housing bubble burst, it led to massive defaults and significant losses for banks, ultimately resulting in a systemic crisis in the financial sector.