Abstract
The free flow of capital and the interconnectedness of the global financial system have made the United States the center of the global capital market, and the Fed's policy adjustments have significant impacts on asset prices and market liquidity worldwide. This paper aims to verify the spillover effects and transmission channels of the Fed's monetary policy through a literature review, curve fitting, qualitative and empirical analysis. The results confirm the existence of spillover effects and identify four different ways in which the Fed's monetary policy affects the Chinese and US capital markets. The paper concludes by giving investment advice in response to the approaching monetary policy expectations of the Fed and the outbreak of global economic recovery. The pandemic has caused major central banks to conduct non-normalized easing operations, leading to a significant rise in global asset prices. The paper also explores China's reaction to the Fed's monetary policy in different periods and its implications for individual investors and government management of the financial market. As the world gradually returns to normal with the progress of vaccination, the paper hopes for a calm and orderly capital market.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
