The Federal Reserve In Two Crises

Abstract

The country has experienced two economic crises in the first two decades of the 21st century, but there are significant differences between the 2008 crisis and the 2020 crisis caused by the pandemic. In this policy study, Thomas R. Saving reports the actions of the Federal Reserve and evaluates its responses to different aspects of each crisis, including the timeliness of asset increases by the Federal Reserve. Economic factors that occurred before and during each crisis are also considered, including the unemployment rate, labor force participation, and real GDP growth.