Research On The U.S. Interest Rate Policy And Its Effects By Macro-analysis

Interest rate policy played an extremely important role in the history of U.S. monetary policy. The Fed is very good at using its interest rate weapon in response to changes in the economic cycle. Generally speaking, the use of interest rate policy of the United States is very successful, especially the Greenspan era.As the world's economic "locomotive", the United States has always been the most national attention, and it affects the economic development of the global economy, its economic and financial policies affect their home and the world's other economic entities. The federal funds rate, as the Fed's monetary policy indicator, reflects the most important indicators of "wind direction". Besides, it also serves as the global benchmark for the role of interest rates. Its special status, change trends are also some concerns.The first part of this paper describes the meaning of the selected research problems, the main literature review, research ideas and frameworks, and the innovation and shortage; The second part of the article involved in the relevant theoretical basis for a simple introduction; The third part introduces the historical practice of interest-rate policy since the establishment of the Federal Reserve; The fourth, fifth part analysis the application and effects of interest-rate policy since the mid-90s; The sixth part shows that if the Federal Reserve continued to change interest rate policy, what international "butterfly effect" it will bring to the world economy and international financial markets; The seventh part of the paper summarizes the whole paper, in conjunction with the current macroeconomic situation of the United States, and make a brief analysis of the prospect for U.S. interest rate policy.