Which of the following policies that the Fed followed after 2014?
A)To unwind expansionary policy measures and try to return to a normal stance of policy.
B)To get the economy out of a recession.
C)To stimulate the U.S.financial and banking systems.
D)To lower interest rate in an attempt to stimulate economic growth.
E)None of these.

Question

Quizplus · Accepted Answer

After 2014, the Fed's policy was focused on unwinding the expansionary policies they had put in place after the 2008 financial crisis and returning to a more normal stance of policy. This included gradually raising interest rates and reducing their balance sheet through the process of quantitative tightening. Option B and D are incorrect as they relate to policies that were implemented during or immediately after the recession, not after 2014. Option C is also incorrect as it does not accurately describe the Fed's policy after 2014.

Which of the Following Policies That the Fed Followed After