Impact of Monetary Policy on the U.S. Service Sector in the Post-2007 Financial Crisis

The United States in response to the 2007 financial crisis undertook significant monetary policy reforms to enhance financial stability and to reduce likelihood of future crises. This article investigates the effect of post-crisis monetary policy shocks on the U.S. service sector with a specific focus on the real estate, rental, and leasing sub sector, which was among the most affected sub sector during the financial crisis. Using a vector auto-regression (VAR) framework, the analysis indicates that monetary policy shocks exhibit a neutral effect on the output of real estate, rental, and leasing output, both nationally and at the state level. Robustness checks support the consistency of these findings, suggesting a limited transmission of monetary policy shocks to this sub sector in the post-crisis period. Received: 01 February 2026 / Accepted: 27 February 2026 / Published: March 2026