Research on the Impact of Monetary Policies on Economic Development: Perspective from the United States

Abstract

During COVID-19, the Fed applied several policies to boost the economy, including tax cuts and lower interest rates. In March of 2022, the Fed began raising the interest rates as a response to the inflationary economy, which put a full stop to the COVID-19 period economically. The series of monetary policies used by the Fed have captured widespread attention since it influences different markets and sectors. This essay examines the effects of monetary policies used by the Fed on different markets by looking at the data published by the Fed and the banks, and also include evaluation made by experts in news and essays. This paper can conclude that expansionary monetary policies to some extent, are considered helpful for lowering the inflation rate, however, they will cause some destruction to the housing market, banks, investors, and the whole global economy, the author can see this through criticism and data from the housing market, the bankruptcy of some banks and different industries. This essay includes both the positive and negative effects of a few common monetary policies and makes an overall suggestion.