The Federal Reserve has initiated expansionary monetary policy initiatives such as interest rate reductions and quantitative easing. These policies are intended to increase the amount of demand, encourage borrowing and spending, and avert a prolonged economic slump. The decision to adopt an expansionary monetary policy was made in response to concerns about low rates of inflation and sluggish economic growth. In summary, resolving the causes of disruption necessitates a combination of monetary and fiscal policy actions designed to promote both immediate economic stability and long-term growth opportunities. To obtain the best results for the economy, officials must carefully examine the trade-offs associated with each policy decision