Research on the Relationship Between the US Financial System and Macroeconomics

In the post pandemic era, the US financial system and macroeconomy have undergone significant changes. In terms of the financial system, the Federal Reserve implemented quantitative easing policy, which led to a surge in money supply and flooding of liquidity, which to some extent inflated the stock market foam. At the same time, the volatility of the US financial market has increased and risk events have occurred frequently, such as the risk events of banks like Silicon Valley Bank and Credit Suisse, which have raised concerns about financial stability in the market. In terms of macroeconomics, the US government has launched large-scale fiscal stimulus measures to support economic recovery. These measures include providing direct economic assistance to households and businesses, expanding unemployment benefits, and offering low interest loans. These policies effectively boosted the economy in the short term, but also led to a sharp increase in government debt and inflationary pressures. Starting from the three major sectors of the US dollar, US bonds, and the Federal Reserve, and analyzing the relationship between the two through causal analysis and literature research, it is concluded that the US financial system has both advantages and disadvantages for macroeconomic development