During the Cold War, the foundation of U.S. economic policy was centered around capitalism and the containment of communism. The U.S. aimed to prevent the spread of communist influence through initiatives like the Marshall Plan, which provided economic aid to rebuild Western European nations, thereby promoting democracy and market economies. Additionally, policies such as free trade agreements and foreign direct investment were encouraged to strengthen allies. The U.S. also engaged in military interventions where it felt communism posed a threat, further solidifying its economic and foreign policy during this period.