United States monetary policy

United States monetary policy involves managing the supply of money and interest rates to promote economic stability and growth. The Federal Reserve (the Fed) adjusts interest rates and buys or sells government securities to influence borrowing costs. Lower interest rates encourage spending and investment, helping economic growth, while higher rates can slow inflation and prevent the economy from overheating. The goal is to maintain full employment and stable prices, balancing economic expansion with inflation control. The Fed's actions are based on economic data and financial conditions, working behind the scenes to support overall economic health.