In the backdrop of the US economy slowly improving, the US Federal Reserve Chairman Ben S Bernanke has said that stricter regulatory measures will be the best response to tackle housing bubble. Speaking at the annual meeting of the American Economic Association in Washington, he said, stronger regulation and supervision would have been more effective to constrain the housing bubble than a general increase in interest rates.Bernanke, who is awaiting confirmation for the second-term as Fed Chief, said the trend is due to increased use of exotic type of mortgages and general decline in underwriting standards. He noted the main source of lower initial monthly payments, which allowed more people to enter the housing market was not on account of the general level of short-term interest rates. Reckless sub-prime lending coupled with exotic mortgage instruments have been largely blamed for the financial crisis. After being hit by one of the worst financial turmoil since the 1930s Great Depression, the US regulators are looking at ways to strengthen regulations and supervisory policies.