U.S. monetary policy refers to the actions taken by the Federal Reserve (the central bank of the United States) to control and regulate the money supply and interest rates in the economy. The primary goal of U.S. monetary policy is to promote price stability, or to keep inflation under control, while also supporting sustainable economic growth and full employment. The Federal Reserve uses various tools, such as open market operations, reserve requirements, and discount rates, to influence the money supply and interest rates in the economy, which in turn affects spending, borrowing, and investment decisions of individuals and businesses. The ultimate aim of U.S. monetary policy is to create optimal conditions for economic stability and growth.
