United States monetary policy response to the COVID-19 pandemic and its impact on unemployment rates
Year: 2024
Type: article
Abstract: The COVID-19 outbreak caused a drastic economic downturn resulting in high levels of job loss and disruptions across different industries. In response, the Federal Reserve (Fed) introduced monetary strategies such as lowering interest rates, implementing quantitative easing and providing emergency loans to stabilize the economy. This academic paper delves into how the Fed’s monetary policy responded to the COVID-19 crisis and its effects on unemployment in the U.S. By analyzing data from before and during the pandemic, this study assesses how effective these measures were in reducing joblessness and aiding economic recovery. The research suggests that while the Fed’s interventions played a role in averting a severe recession, the recovery was not uniform with certain demographic groups and sectors experiencing prolonged unemployment. The paper closes with a conversation about the shortcomings of monetary policy in addressing structural unemployment and the need to consider coordinated fiscal strategies as well. Keywords: COVID-19 Pandemic, Monetary Policy, Unemployment Rates, Economic Recovery.
Institution: Ohio University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4402884744