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Since the recession of 2007, the U.S. Federal Reserve has increased bank reserves and brought the federal funds rate (interes
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Yes the actions of the Fed to engage in monetary expansion, did indeed prevent the recession from getting worse and becoming a crisis like 1930. The reduced rates coupled with quantitative easing programs helped improve the liquidity conditions in the market and firms and individuals were able to borrow more. Thus, as the worst of the recession was over, the US economy slowly started recovering instead of keep going down. Active monetary policy by the Fed was indeed crucial in porviding a boost to the economy and save it from crashing further.

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