Part 1: The Federal Reserve and central banking

Typically, FOMC refers to the Federal Reserve committee that operates within the Federal Reserve System to oversee and facilitate all the  financial operations. One of the primary objectives of FOMC is decision-making concerning money supply in the United States.  

According to the Board of Governors of the Federal Reserve System (2021) the monetary policy in the U.S focuses on the communications and actions of the Federal Reserve. Thus, the Federal Reserve can moderate interest rates, stabilize prices, and promote maximum employment. Based on this policy, the FOMC's view on the economy is that decision-making on interest rates can help moderate long-term interest rates, thus contributing to economic growth. Thus, FOMC can use this policy to enable the Federal Research to pursue economic goals as instructed by Congress. 

In the article written by Morelli et al. (2015), some of the banking systems in the U.S suffered shortages in the U.S Dollar during a financial crisis of 2007-2008. The statement arising from the financial crisis presented in the article reflects FOMC's views on the economy because a decision by the Federal Reserve to safeguard the stability of the U.S banking system was successful since FOMC decided on how to manage monetary policy. According to FOMC, it was essential to review economic and financial conditions, assess the risks, and use suitable monetary policy to bring sustainable economic growth and price stability during a financial crisis. Overall, the view of FOMC is that the economy cannot thrive if there is shortage of money supply.

Part 2: Quantitative Easing

Quantitative easing is a tool used by the central bank to inject money directly into the economy. For example, the central bank can decide to purchase government bonds. It can also buy financial assets to energize the economy. Nonetheless, this policy has attracted mixed reactions from those supporting it and those opposing it. In this assessment, the quantitative easing argument is that it stimulates the economy during and after crises.

Typically, quantitative easing is highly used as a policy that provides immediate results during crises. Most governments use quantitative policy to navigate crises that may hit the economy because it provides a quick fix. Many governments have used quantitative easing to provide instant relief from crises. For example, the monetary policy was used in Britain in August 2016 when the Bank of England decided to launch a quantitative easing program to address the economic ramifications of Brexit (Steeley, 2020). During this period, Britain was in an economic crisis and wanted to have a favorable Brexit deal. Thus, the quantitative easing program aimed to lower the interest rate, create employment, and stimulate business investment after the Bank of England purchased 10 billion pounds on corporate debt and 60 billion pounds of government bonds. Lastly, Quantitative easing is effective because it has been used to bring immediate results in managing crisis from the COVID-19 pandemic. For example, the U.S. Federal Reserve announced on March 15, 2020, the need to buy financial assets amount to $700 billion as an emergency strategy for stimulating the financial system (Hartley & Rebucci, 2020). Thus, quantitative easing brings immediate results because it has been used in the U.S to address the massive economic and market turmoil caused by COVID -19 pandemic.