fiscal policy refers to decisions by congress and the executive to raise/cut spending and or taxes, and it includes defense spending as wall as social spending.
monetary policy refers to decisions by the central bank or fed. The potus and congress decide who is on the fed's board of governors. Governors may be removed "for cause" but that generally doesn't mean getting fired because rates are too high or too low. Still, it's at worst 50-50 that a potus can remove a governor from the fed chairperson slot, and make him a mere governor again, and appoint someone else.
We now have a situation where the fiscal arm needs to sell a LOT of debt bonds. The fed, or monetary arm, stepped in to support not just the fed debt, but also buy as much of the US's mortgages as it needed to do to shore up banks. And, the fed did that by expanding the amount of "money" its member banks had to lend, and the low rates.
If the cong/executive (fiscal) promote econ policies opposed by the Fed (monetary), it would not be good. And it very possibly decided the 92 election. And both can increase or decrease the money supply M-2. Only the Fed can raise or lower rates. And the Fed can make it easier to run higher deficits by both having lower rates, and by buying govt debt directly.
en.wikipedia.org
