Author(s)

Sen Wang

Affiliation(s)

University of Southern California, Los Angeles, CA 90007, USA.

Corresponding Author

Sen Wang

ABSTRACT

Under the background of the increasingly close connection of the global economy, the Federal Reserve, as the leader of the financial system in the United States and even the world, undoubtedly affects the nerves of the global market with every adjustment of its monetary policy. As an important means for the Federal Reserve to cope with the downward pressure on the economy, stimulate economic growth, ease the pressure of deflation and stabilize the financial market, interest rate reduction policy has been frequently adopted in recent years. This paper aims to deeply analyze the multi-dimensional impact of the Federal Reserve's interest rate cut policy, and carefully evaluate its far-reaching impact on economic growth, inflation level, employment situation and financial market operation by comprehensively applying economic theoretical analysis and empirical research methods. At the same time, based on the current internal and external challenges facing the US economy, this paper will reasonably predict the future adjustment direction of the Federal Reserve's monetary policy and the possible economic effects, with a view to providing valuable reference for investors, policy makers and even global economic participants.

KEYWORDS

Fed cuts interest rates; Economic analysis; Empirical research

CITE THIS PAPER

Sen Wang. Effect evaluation and future trend of federal reserve's interest rate reduction policy —— based on the analysis of American economic situation. Journal of Trends in Financial and Economics. 2024, 1(2): 23-27. DOI: https://doi.org/10.61784/jtfe3017.

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