The article is devoted to the latest trends in the U.S. monetary policy, which has a significant impact on global financial markets, exchange rates, financial and real investment flows, prices of traded goods, etc.As the analysis has shown, the U.S. monetary policy’s formation, as well as in other developed countries, is now taking place in conditions of new monetary normality, which was formed after the "great recession" and is characterized by historically low interest rates, disinflationary pressure and slowdown of economic growth.The US was the first advanced economy that overcame the financial crisis of 2007-2008. This was due, among other things, to the monetary policy of the Federal Reserve System (Fed), which at first practically zeroed key rates and then launched a program of quantitative easing, which allowed to "inject" $3.7 trillion into the country's economy from December 2008 to October 2014. At the same time, this led to a multiple increase in the balance sheet of the Fed and changes in its structure.Since autumn 2014, the regulator decided to start normalizing the monetary policy, which envisages a gradual increase in the target range for the federal funds’ rate and the reduction of its aggregate securities holdings. As a result of these actions, the U.S. Federal Reserve now has a slightly greater potential for monetary stimulus than many other developed countries in the event of a new recession. Simultaneously, however, the Fed's current interest rates are significantly lower than its long-term normal level.Despite this, in early 2019 the regulator changed its rhetoric and policy, and on July 31, 2019, the target range for the federal funds’ rate was reduced due to weak growth of business fixed investment and problems with achieving the target inflation. It is likely that due to problems in the U.S. economy, the process of reducing rates will continue.This course of events shows that, firstly, in the current environment, advanced economies should not rely heavily on monetary policy as a reliable mean of resolving deep structural problems. And, secondly, that global financial instability is a new reality that has come to exist seriously and for the long haul, not only for purely monetary reasons, but also because of fundamental factors of development and deepening global contradictions by the Fourth Industrial Revolution. For Ukraine, this new reality does not promise anything good, because as a small open economy specialized in raw materials exports, it is in a high-risk zone.

monetary policy; Federal Reserve System; key rate; target inflation; normalization of monetary policy; new normality

Vishnevsky, V. P., & Kwilinski, A. (2019). Monetary mechanisms of an economy stimulation in developed countries: an analytical review. Econ. promisl., 1 (85), pр. 30-50. doi: http://doi.org/10.15407/econindustry2019.01.030

Romer, C.D., & Romer, D.H. (2013). The Most Dangerous Idea in Federal Reserve History: Monetary Policy Doesn’t Matter. American Economic Review: Papers & Proceedings, 103(3), pp. 55-60. doi: http://dx.doi.org/10.1257/aer.103.3.55

Binder, S., & Spindel, M. (2018). Response to Desmond King’s review of The Myth of Independence: How Congress Governs the Federal Reserve. Perspectives on Politics, 16(3), pp. 779-784. doi: https://doi.org/10.1017/s1537592718001901

Koepke, R. (2018). Fed policy expectations and portfolio flows to emerging markets. Journal of International Financial Markets, Institutions and Money, 55. pp. 170-194. doi: https://doi.org/10.1016/j.intfin.2018.03.003

Brauning, F., & Ivashina, V. (2019). U.S. Monetary Policy and Emerging Market Credit Cycles. Journal of Monetary Economics. In Press. doi: https://doi.org/10.1016/j.jmoneco.2019.02.005

Park, S.-C. (2018). U.S. Protectionism and Trade Imbalance between the U.S. and Northeast Asian Countries. International Organisations Research Journal, 13(2), pp. 76-100. doi: https://doi.org/10.17323/1996-7845-2018-02-05

Stiglitz, J. (2019). Trump’s Deficit Economy [online]. Project Syndicate. Retrieved from https://www.project-syndicate.org/commentary/trump-trade-and-fiscal-deficits-by-joseph-e-stiglitz-2019-08

Barro, R. (2019). Is Politics Getting to the Fed? [online]. Project Syndicate. Retrieved from https://www.project-syndicate.org/commentary/trump-powell-politics-fed-by-robert-j-barro-2019-07

Summers, L.H., & Stansbury, A. (2019). Whither Central Banking? [online] Project Syndicate. Retrieved from https://www.project-syndicate.org/commentary/central-bankers-in-jackson-hole-should-admit-impotence-by-lawrence-h-summers-and-anna-stansbury-2-2019-08

Moser, H. (2019, July 08). Reshoring Was at Record Levels in 2018. Is It Enough? [online]. Industry Week. Retrieved from https://www.industryweek.com/economy/reshoring-was-record-levels-2018-it-enough

Li, Y. (2019). Dow tanks 800 points in worst day of 2019 after bond market sends recession warning [online]. CNBC. Retrieved from https://www.cnbc.com/2019/08/14/stock-markets-wall-street-in-focus-amid-earnings-economic-data.html

Board of Governors of the Federal Reserve System (2019). Federal Reserve issues FOMC statement. Press Release.

Roubini, N. (2019, July 31). The Growing Risk of a 2020 Recession and Crisis [online]. Project Syndicate. Retrieved from https://www.project-syndicate.org/commentary/trade-war-recession-crisis-2020-by-nouriel-roubini-2019-06

Vishnevsky, V.P., Vishnevskaya, E.N., Matyushin, A.V., & Shelud'ko N.M. (2017). Monetary power in the modern world. Who will challenge the dollar? In V.P. Vishnevsky and N.M. Shelud'ko (Eds.); State Institution "Institute of Economics and Forecasting of the NAS of Ukraine". Kiev, Akademperiodika, 2017. 200 pp.

SWIFT. (2019). RMB Tracker [online]. Retrieved from https://www.swift.com/our-solutions/compliance-and-shared-services/business-intelligence/renminbi/rmb-tracker/document-centre

SWIFT (2019, April). RMB Tracker Monthly reporting and statistics on renminbi (RMB) progress towards becoming an international currency, 7 p.

The Economist. (2019). The world economy is slowing down [online]. Retrieved from https://www.economist.com/graphic-detail/2019/04/09/the-world-economy-is-slowing-down

International Monetary Fund (2019, April). World Economic Outlook: Growth Slowdown, Precarious Recovery. Washington, DC.

United Nations (2019). World Economic Situation and Prospects 2019. New York, 218 p.

Powell, J.H. (2019, March 8). Monetary Policy: Normalization and the Road Ahead. SIEPR Economic Summit. Stanford, California. Stanford Institute of Economic Policy Research, 15 p.

Forbes.com. (2019). The World's Most Powerful People [online]. Retrieved from https://www.forbes.com/powerful-people/list/#tab:overall

Lubin, D. (2019). How US Monetary Policy Has Tamed China [online]. Project Syndicate. Retrieved from https://www.project-syndicate.org/commentary/how-us-monetary-policy-has-tamed-china-by-david-lubin-2019-01 [Accessed 30 Apr. 2019].

Board of Governors of the Federal Reserve System (2018). The Fed - Policy Normalization [online]. Retrieved from https://www.federalreserve.gov/monetarypolicy/policy-normalization

Board of Governors of the Federal Reserve System (2019, March 20). Federal Reserve Press Release.

Board of Governors of the Federal Reserve System (2019). Overnight Reverse Repurchase Agreement Facility [online]. Retrieved from https://www.federalreserve.gov/monetarypolicy/overnight-reverse-repurchase-agreements.htm

Feldstein, M. (2018). Why Is the Fed Still Raising Interest Rates? [online]. Project Syndicate. Retrieved from https://www.project-syndicate.org/commentary/three-reasons-for-fed-interest-rate-increases-by-martin-feldstein-2018-12

LaBrecque, L. (2019). Recessions and Yield-Curve Inversion: What Does It Mean? [online] Forbes. Retrieved from https://www.forbes.com/sites/leonlabrecque/2019/03/29/recessions-and-yield-curve-inversion-what-does-it-mean/#287de9195890

Andolfatto, D., & Spewak, A. (2018). Does the Yield Curve Really Forecast Recession? Economic Synopses, 30.

Board of Governors of the Federal Reserve System (2019, May 1). Federal Reserve Press Release.

Roubini, N. (2019). Understanding the Fed’s Dovish Turn [online]. Project Syndicate. Retrieved from https://www.project-syndicate.org/commentary/fed-interest-rate-pause-by-nouriel-roubini-2019-03

Boesler, M. & Arnold, L. (2019). What Trump Can (and Can’t) Do to Steer Fed Policy [online]. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2019-04-12/what-trump-can-and-can-t-do-to-steer-fed-policy-quicktake

Clarida, R. (2019). U.S. Economic Outlook and Monetary Policy [online]. Board of Governors of the Federal Reserve System. Retrieved from https://www.federalreserve.gov/newsevents/speech/clarida20190411a.htm

The Federal Reserve (2018, November 7-8). Minutes of the Federal Open Market Committee. Federal Open Market Committee.

Board of Governors of the Federal Reserve System (2019). Federal Reserve Board - Interest on Required Reserve Balances and Excess Balances [online]. Retrieved from https://www.federalreserve.gov/monetarypolicy/reqresbalances.htm

Powell, J.H. (2019, August 23). Challenges for Monetary Policy. Remarks by Jerome H. Powell, Chair Board of Governors of the Federal Reserve System. A symposium sponsored by the Federal Reserve Bank of Kansas City. Jackson Hole, Wyoming. 14 p.