Definition ∞ Economic policy refers to the actions undertaken by governments and central banks to influence a nation’s economy. These policies aim to manage inflation, unemployment, economic growth, and stability through fiscal measures (taxation and spending) and monetary measures (interest rates and money supply). They shape the macroeconomic environment.
Context ∞ News surrounding economic policy decisions, particularly those made by major central banks like the Federal Reserve, frequently impacts the digital asset market. Announcements regarding interest rate adjustments, quantitative easing or tightening, and regulatory frameworks for financial products directly influence liquidity, investor sentiment, and the valuation of cryptocurrencies.