The effectiveness of the FED during Covid-19
Takaneva, Arttu (2024)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024060320149
https://urn.fi/URN:NBN:fi:amk-2024060320149
Tiivistelmä
The Covid-19 years affected the US economy in a major way, forcing reforms both in politics and econom-ics. The cause of this crisis was unexpected and as such the economy nor its supporting systems were ready to receive it, making it a unique case.
By gauging and evaluating the methods used by the FED to thwart or minimize the damage done by this unprecedented crisis. By viewing the past crisis and the methods employed by the FED then, a more pre-cise measure of how this economic entity can handle different kinds of disasters, be they wars, economic downturns or crisis.
By going through the intricacies of the FED, how it is structured and how it works, and evaluate the impact of it in US economic history to see how well the Covid-19 crisis was handled. For this, many economic fac-tors were considered and evaluated in order to measure the effects of methods used by the FED during the crisis.
the secondary data was gathered from the stock market online sources and the economic data from FEDs online databanks. The data was analysed and compared to the timeline of the FEDs actions at the time to see any potential correlations within the data. The methods chosen were done so with understanding of the research question and their correlation with the topic.
The findings were that there is a strong correlation with market fluctuations and the actions taken by the FED, considering the timeline for economic care packages and most importantly changes within the inter-est rate set by the FED for their treasury rates. Especially the interest rate changes initiated the changes in the market since it gave banks additional room to manoeuvre with lending, it increased the amount of capital on the market and eased the effects of the economic downturn caused by Covid-19.
By gauging and evaluating the methods used by the FED to thwart or minimize the damage done by this unprecedented crisis. By viewing the past crisis and the methods employed by the FED then, a more pre-cise measure of how this economic entity can handle different kinds of disasters, be they wars, economic downturns or crisis.
By going through the intricacies of the FED, how it is structured and how it works, and evaluate the impact of it in US economic history to see how well the Covid-19 crisis was handled. For this, many economic fac-tors were considered and evaluated in order to measure the effects of methods used by the FED during the crisis.
the secondary data was gathered from the stock market online sources and the economic data from FEDs online databanks. The data was analysed and compared to the timeline of the FEDs actions at the time to see any potential correlations within the data. The methods chosen were done so with understanding of the research question and their correlation with the topic.
The findings were that there is a strong correlation with market fluctuations and the actions taken by the FED, considering the timeline for economic care packages and most importantly changes within the inter-est rate set by the FED for their treasury rates. Especially the interest rate changes initiated the changes in the market since it gave banks additional room to manoeuvre with lending, it increased the amount of capital on the market and eased the effects of the economic downturn caused by Covid-19.