[{"data":1,"prerenderedAt":63},["ShallowReactive",2],{"term:monetary-policy":3},{"term":4,"related":46},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":31,"navigation":32,"path":33,"related":34,"seo":39,"stem":40,"takeaways":41,"__hash__":45},"terms\u002Fterms\u002Fmonetary-policy.md","Monetary Policy",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-monetary-policy","Understanding Monetary Policy",[16,17,18],"p",{},"Monetary policy is set by a central bank, such as the Federal Reserve. Its main tool is the short-term policy interest rate, which influences borrowing costs across the economy.",[16,20,21],{},"Tighter policy (higher rates) cools spending and inflation; looser policy (lower rates) supports borrowing, spending, and employment. In deep downturns, central banks may also buy bonds, known as quantitative easing.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"economy","How a central bank manages interest rates and the money supply to steer the economy.","md",[],{},true,"\u002Fterms\u002Fmonetary-policy",[35,36,37,38],"federal-funds-rate","quantitative-easing","fiscal-policy","interest-rate",{"title":6,"description":28},"terms\u002Fmonetary-policy",[42,43,44],"Monetary policy is run by the central bank, not the government's budget.","Its main lever is the short-term interest rate.","Effects on the economy arrive with long lags.","31HvH8M7QsJZCaB5d8tYmiRy1BtpXAFOsCRVou5dcxw",[47,51,55,59],{"title":48,"description":49,"path":50},"Federal Funds Rate","The interest rate U.S. banks charge each other for overnight loans, targeted by the Federal Reserve.","\u002Fterms\u002Ffederal-funds-rate",{"title":52,"description":53,"path":54},"Fiscal Policy","The use of government spending and taxes to influence the economy.","\u002Fterms\u002Ffiscal-policy",{"title":56,"description":57,"path":58},"Interest Rate","The cost of borrowing money, or the return for lending it, as a percentage per year.","\u002Fterms\u002Finterest-rate",{"title":60,"description":61,"path":62},"Quantitative Easing (QE)","Large-scale bond purchases by a central bank to lower long-term interest rates.","\u002Fterms\u002Fquantitative-easing",1793374005449]