Unprecedented Fed actions during Great Recession reshaped U.S. monetary policy
The U.S. faced a severe economic downturn called the Great Recession from 2007 to 2009. To boost the economy, the Federal Reserve used tools like lowering interest rates and buying assets. This helped provide liquidity to banks and stabilize the financial system. The Fed's actions, including large-scale asset purchases, were effective in supporting the economy during and after the recession.