Monetary Policy The actions of a central bank, currency board or other regulatory committee that determine the size and rate of growth of the money supply, which in turn affects interest rates. Investopedia Says: In the United States, the Federal Reserve is in charge of monetary policy. Related Terms: Accomodative Monetary Policy Discount Rate Fed Funds Rate Federal Reserve Fiscal Policy Monetary Base Money Supply Moral Suasion Open Market Operations Tight Monetary Policy |