Abstract
Aims: This study has looked at how changes in monetary policy impact the profitability of US companies in an attempt to provide insight into how these changes impact corporate financial outcomes.
Method: The study has investigated the relationship between changes in monetary policy and corporate profitability using quantitative approaches. The kind and intensity of the relationships between the variables were ascertained by statistical analysis of the data. The main conclusions of the study were highlighted in a sequence of organised tables and figures.
Findings: The results of this study have highlighted the significance of monetary policy decisions on firm performance, providing policymakers and business leaders with insightful information. With implications for future policy and company strategy creation, this work has added to the body of literature by presenting empirical data on the dynamic interplay between monetary policy and corporate profitability.
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Through direct access to security and the impact on market participants’ expectations of short-term pricing, the central bank sets short-term prices and influences long-term money supply Monetary policy is obviously affected largely on interest rates (Hoffman, Borio, and Gambacorta, 2017). Nonetheless, both conventional and unconventional monetary policies have been vital in resolving the macroeconomic slowdown and bolstering financial intermediaries (Altavilla, Boucinha and Peydró, 2018). Monetary policy controlled by central banks affects interest rates, inflation, and economic stability everywhere. All of these have a significant impact on the economic climate. To maintain monetary policy, central banks often adjust the quantity of money available by buying or selling assets on the open market.
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Altavilla, C., Boucinha, M. and Peydró, J.-L. (2018) ‘Monetary policy and bank profitability in a low interest rate environment’, Economic policy, 33(96), pp. 531–586.
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