MONETARY POLICY2Week 7 Discussion 2Explain how monetary policy pursued by the Federal Reserve under Chairman Alan Greenspanin the 1990s and early 2000s contributed to both the longest consistent growth period in modernUS history and the great Recession of 2008-2009.The Federal Reserve in 1987 the stock market dropped into a desperate recession.Chairman Alan Greenspan initiated a two-step procedure to address the need for liquidation. Hesupplied for liquidation for the commerce and individuals, but also made sought to reduce thedemand for liquidity. The Federal Reserve adopted low interest rates to sustain the markets andreduce inflation. This strategy also involved increasing the interest rates with a rise in stock, anda consequential drop in rates with drops in stocks. This strategy was adopted by Alan Greenspangovernance and served to create the longest consistent growth period since consumers and