American monetary policy

American monetary policy involves the Federal Reserve using tools like adjusting interest rates and buying or selling government securities to influence the economy. Its main goals are to promote stable prices, maximum employment, and healthy economic growth. Lower interest rates make borrowing cheaper, encouraging spending and investment, while raising rates can help curb inflation. The Fed also manages the money supply direction and stability of the financial system. These actions help maintain economic balance, control inflation, and support employment, adapting to changing economic conditions to sustain overall economic health.