MODERN TRENDS IN THE MONETARY POLICY OF THE US FEDERAL RESERVE SYSTEM
Subject / Topic The Great Recession of 2008-2009 led to the significant changes in the monetary policy of the US Federal Reserve. The inability of the traditional monetary policy instruments to confront the crisis phenomena determined the search for alternative non-traditional ways of interfering in the activities of financial markets. Study of the policy of "quantitative easing", analysis of the results of its implementation. Determination of the necessity of transition to the policy of "quantitative tightening" in the conditions of the post-crisis stabilization of the US economy. Goals / Objectives The purpose of the study is to identify current trends and new unconventional monetary policy tools of the US Federal Reserve System. Methodology In this work general and special research methods were used, including analysis, synthesis, generalization. Conclusion and Relevance Traditional instruments of monetary policy and regulation of financial markets could not stabilize the financial system and create conditions for preventing the threat of deflationary processes. Reducing the target rate for federal funds to almost zero level did not help to overcome the recession in the US economy. The Fed's unconventional monetary policy allowed to avoid significant risks, to stabilize financial markets and to resume normal activity of the American banking system. The transition to the policy of "quantitative tightening" was caused by the need of reducing the Fed's "inflated" balance by disposing treasury bonds and mortgage securities. The policy of reducing the balances of central banks of the leading developed countries after the Fed can lead to a contraction of the global liquidity and cause the market volatility that could destabilize the global financial markets.